Section 8 Fair Market Rent (FMR) for ZIP 32254 - 2027

Location: Jacksonville, FL | Metro: Jacksonville, FL HUD Metro FMR Area

Investment Score for ZIP 32254

A+

Monthly Rent (2BR)

$1,340

Median Price (2BR)

$89,080

1% Rule

1.5%

Annual Yield

18.05%

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	$1,110
1 Bedroom	$1,120
2 Bedrooms	$1,340
3 Bedrooms	$1,640
4 Bedrooms	$2,050
5 Bedrooms	$2,378
6 Bedrooms	$2,663
7 Bedrooms	$2,876
8 Bedrooms	$3,020

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	$1,340	$89,080	1.5%	A+
3BR	$1,640	$129,405	1.27%	A
4BR	$2,050	$203,112	1.01%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,927

Median Household Income

$34,953

Housing Units

6,243

Renter Percentage

50.2%

Occupancy Rate

86.8%

Renter Occupied

2,724

To decide whether to invest in ZIP 32254 (Jacksonville, FL) for Section 8 properties, follow these steps:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for ZIP 32254 in fiscal year 2024 is $1290. For a property valued at $124,177, you need to calculate if this FMR can cover the debt service.

If the monthly debt service on your property is less than or equal to $1290, then the answer is Yes. The FMR will cover your expenses, making the investment viable.

If the monthly debt service exceeds $1290, then the answer is No. The rent received from a Section 8 tenant would not be sufficient to cover the mortgage and other associated costs.

Step 2: Market Rent Comparison

The Zillow Observed Rent Index (ZORI) for ZIP 32254 is $1302. This is the average market rent in the area.

If the market rent ($1302) is above the FMR ($1290), then the answer is It Depends. While there is potential to earn more from market rents, the decision hinges on whether you plan to exclusively participate in the Section 8 program or consider both market and Section 8 tenants.
If the market rent is at or below the FMR, then the answer is No. There is no significant financial incentive to invest solely based on the FMR when market rents do not exceed it.

Step 3: Rental Demand Assessment

In ZIP 32254, 50.2% of residents are renters. The Days on Market (DOM) data is not available, which means we cannot assess how quickly rental properties are typically leased in this area.

If you find that the rental demand is robust despite the lack of DOM data, then the answer is Yes. A high percentage of renters suggests strong demand, which can support Section 8 investments.
If the rental demand is weak or uncertain, then the answer is No. Without clear evidence of demand, investing in Section 8 properties may not be financially sound.
If the rental demand is moderate but you can secure a steady stream of Section 8 tenants, then the answer is It Depends. Your ability to consistently lease properties under the Section 8 program will determine the success of your investment.

In summary, for ZIP 32254, the viability of a Section 8 investment is contingent upon the debt service coverage ratio, comparison between market rent and FMR, and the strength of rental demand. Use the provided data points to guide your decision-making process.

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.