Location: Baker County, FL | Metro: Jacksonville, FL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $160,470 | 0.76% | D |
| 3BR | $1,490 | $278,358 | 0.54% | F |
| 4BR | $1,860 | $313,401 | 0.59% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 32234 (Jacksonville, FL) for Section 8 investment, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1140 cover the debt service on a $291,159 property?
No: The FMR of $1140 is unlikely to cover the debt service on a $291,159 property. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. With an average monthly rent of $1140, it would be challenging to meet these obligations without significant equity or low financing costs.
Yes: If your financing terms allow for a debt service that can be covered by the FMR of $1140, proceed to Step 2.
Step 2: Is the market rent ($2,012 ZORI) above, at, or below the FMR?
Above: The market rent of $2,012 is significantly higher than the FMR of $1140. This indicates that there might be better opportunities to invest in properties that can command higher rents outside of Section 8. However, if your goal is specifically to serve the Section 8 market, continue to Step 3.
At or Below: If the market rent is closer to the FMR, then the area is more competitive for Section 8 properties. Proceed to Step 3 to assess demand.
Step 3: Are 13.6% of residents renters and is the Days on Market (DOM) sufficient to indicate demand?
It Depends: With 13.6% of residents being renters, the rental demand in ZIP 32234 is moderate. However, the Days on Market is listed as 'N/A', which means there isn't enough data to determine how quickly properties are rented out. If you find that other sources indicate a low DOM, this could suggest strong demand despite the lower FMR and higher market rent.
Yes: If you can secure a property where the debt service is manageable at $1140 per month and you see strong rental demand, investing in this ZIP code for Section 8 could be viable. However, you will need to consider the difference between market rent and FMR, which might affect your tenant pool and overall profitability.
No: If the debt service cannot be covered by the FMR and the market rent is significantly higher, it suggests that the Section 8 market in ZIP 32234 is not robust enough to support your investment goals. Look for areas where the FMR is higher relative to property costs or where the rental demand is stronger.
The decision to invest in ZIP 32234 hinges on your ability to manage debt service at the FMR level and your tolerance for a potentially smaller tenant pool due to the disparity between FMR and market rent. Additionally, the lack of DOM data makes it harder to gauge the speed of property turnover, which is crucial for cash flow management.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.