Section 8 Fair Market Rent (FMR) for ZIP 32225 - 2027

Investment Score for ZIP 32225

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	$1,590
1 Bedroom	$1,610
2 Bedrooms	$1,920
3 Bedrooms	$2,350
4 Bedrooms	$2,940
5 Bedrooms	$3,410
6 Bedrooms	$3,819
7 Bedrooms	$4,125
8 Bedrooms	$4,331

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
2BR	$1,920	$202,591	0.95%	C
3BR	$2,350	$351,178	0.67%	D
4BR	$2,940	$462,946	0.64%	D
5BR	$3,410	$696,531	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32225 (Jacksonville, FL) #### Section 8 Voucher Dynamics In ZIP code 32225, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1930. This figure represents 25.6% of the median household income of $90,559, which is relatively affordable compared to the national average. However, it is important to note that the actual rents in the area can be higher than the FMR, leading to potential constraints for voucher holders. For instance, if the actual rent exceeds the FMR, voucher holders may struggle to find suitable housing within their budget. The FMRs for other bedroom sizes are as follows: 0BR at $1580, 1BR at $1610, 3BR at $2380, and 4BR at $2980. These figures provide a benchmark for landlords and tenants but do not necessarily reflect the actual rental prices in the market. #### Affordability & Renter Profile The renter population in ZIP 32225 accounts for 31.6% of the total population, indicating a significant number of individuals who rely on rental housing. With a median household income of $90,559, the affordability of housing is a key consideration. The median rent for a two-bedroom unit is $1930, which is 25.6% of the median household income. This suggests that while some renters may find the housing affordable, others, particularly those with lower incomes, might face challenges. The occupancy rate of 93.6% indicates a tight rental market where demand is high relative to supply, making it difficult for low-income renters to secure housing. #### Investor Angle From an investor perspective, the cash flow potential at FMR levels needs to be evaluated against the local real estate market conditions. The Zillow median price for a two-bedroom home in ZIP 32225 is $201,985, which translates to a price-to-FMR ratio of 8.7x. This means that the purchase price of a property is significantly higher than the rent it could generate based on FMR. For example, a two-bedroom unit priced at $201,985 would need to generate approximately $17,278 in annual rent to match the Zillow median price, which is far above the FMR of $1930 per month. Given the high price-to-FMR ratio, it is unlikely that properties purchased at these levels will be cash-flow positive when rented at FMR rates. Investors should consider the potential for rental increases above FMR or the possibility of converting properties into owner-occupied units to achieve better returns. Additionally, the investment grade in this ZIP code would be considered moderate due to the tight rental market and the high cost of entry. #### Specific Actionable Insights 1. **Focus on Properties Below Zillow Median Price**: Given the high price-to-FMR ratio, investors should seek out properties below the Zillow median price of $201,985. This could mean targeting older homes or units in less desirable areas of the ZIP code to ensure cash-flow positive investments. 2. **Consider Owner-Occupied Units**: If the goal is to maximize returns, investors might want to explore converting rental properties into owner-occupied units. This strategy can help bypass the limitations imposed by FMR and potentially increase the value of the investment over time. 3. **Target Properties with Room for Renovation**: Since the median household income is relatively high, there may be opportunities to renovate and upgrade properties to command higher rents. By investing in improvements, landlords can position their units to attract higher-paying tenants and still remain competitive in the market. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 32225 is to **skip** purchasing properties at the current Zillow median price levels. The high price-to-FMR ratio makes it challenging to achieve positive cash flow when renting at FMR rates. Instead, investors should focus on areas with lower property values or consider alternative strategies such as owner-occupation or property upgrades to improve rental yields. --- This analysis provides a clear picture of the rental market dynamics in ZIP 32225, highlighting the challenges faced by both voucher holders and investors. The tight market and high purchase prices suggest that careful consideration is needed before entering this market as a Section 8-focused investor.

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.