Section 8 Fair Market Rent (FMR) for ZIP 32216 - 2027

Investment Score for ZIP 32216

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,280
1 Bedroom	$1,300
2 Bedrooms	$1,550
3 Bedrooms	$1,900
4 Bedrooms	$2,370
5 Bedrooms	$2,749
6 Bedrooms	$3,079
7 Bedrooms	$3,325
8 Bedrooms	$3,491

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,300	$125,487	1.04%	B
2BR	$1,550	$182,390	0.85%	C
3BR	$1,900	$270,582	0.7%	D
4BR	$2,370	$367,950	0.64%	D
5BR	$2,749	$459,124	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32216 (Jacksonville, FL) #### Section 8 Voucher Dynamics In ZIP code 32216, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1530 per month. This figure represents 29.7% of the median household income in the area, which stands at $61,821. However, the actual rental market is significantly higher. According to Zillow, the median price for a two-bedroom home is $186,079, translating to a monthly rent of approximately $1550 based on typical mortgage payments. The price-to-FMR ratio is 10.1x, indicating that actual housing costs are much higher than the FMR. This means that Section 8 voucher holders face significant constraints in finding affordable housing. They must locate units priced at or below $1530 for a two-bedroom, which is challenging given the high actual rental prices. #### Affordability & Renter Profile The renter population in ZIP 32216 is substantial, with 52.1% of residents being renters. This high percentage suggests a robust demand for rental properties. The occupancy rate of 92.9% further supports this notion, indicating that most available units are occupied, making it a relatively tight market. Given the median household income and the high rental prices, it is likely that many renters are struggling to find affordable housing. The FMR for a three-bedroom unit is $1890, which is still only 30.5% of the median income, suggesting that families with children may be particularly challenged in finding suitable housing within their budget. #### Investor Angle From an investor perspective, the FMRs provide a baseline for what can be charged to tenants using Section 8 vouchers. For a two-bedroom unit, the FMR is $1530, which is lower than the actual median rental price of around $1550. This implies that landlords who want to attract Section 8 tenants might need to accept slightly lower rents than the market average. However, the high occupancy rate and significant renter population suggest that there is strong demand for rental properties, which could help maintain steady occupancy levels. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a conservative estimate of 50% of the FMR for operating expenses (including maintenance, utilities, and property taxes), the net income would be around $765 per month for a two-bedroom unit. This figure needs to be compared against the mortgage payment or other financing costs to assess profitability. If the mortgage payment is less than $765, then the investment would be cash-flow positive at FMR. The investment grade for this ZIP code can be assessed by looking at the balance between demand and supply. With a high renter population and occupancy rate, the demand appears to be strong. However, the high price-to-FMR ratio indicates that the actual market prices are well above the FMR, which could make it difficult to compete with non-Section 8 rentals. Therefore, while the demand is present, the investment grade is moderate due to the competitive nature of the rental market. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1270, which is significantly lower than the median market price. This could provide a better opportunity to attract Section 8 tenants without sacrificing too much potential rental income. 2. **Location Matters**: Within ZIP 32216, certain neighborhoods may offer better opportunities for attracting Section 8 tenants. Areas with lower actual rental prices or those closer to public transportation, schools, and employment centers are likely to have a higher concentration of voucher holders. Investors should conduct a detailed neighborhood analysis to identify these areas. 3. **Rent Stabilization Policies**: Jacksonville has rent stabilization policies that can affect the rental market. Investors should be aware of these regulations and ensure compliance to avoid legal issues. Additionally, understanding local eviction laws and tenant rights can help manage risks effectively. #### Bottom Line For Section 8-focused investors, ZIP code 32216 presents a mixed picture. While there is a strong demand for rental properties, the high actual rental prices make it challenging to find units that are affordable under the FMR guidelines. The recommendation for this ZIP code is to **Hold**. Investors should carefully evaluate the specific unit sizes and locations before committing to purchase. Focusing on smaller units and strategically located properties can improve the chances of attracting Section 8 tenants while maintaining a positive cash flow. However, the overall market conditions suggest that purchasing properties solely for Section 8 tenants may not be as lucrative as in areas with lower price-to-FMR ratios.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.