Section 8 Fair Market Rent (FMR) for ZIP 32303 - 2027

Investment Score for ZIP 32303

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	$1,270
1 Bedroom	$1,360
2 Bedrooms	$1,530
3 Bedrooms	$1,870
4 Bedrooms	$2,010
5 Bedrooms	$2,332
6 Bedrooms	$2,612
7 Bedrooms	$2,821
8 Bedrooms	$2,962

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	$1,360	$125,907	1.08%	B
2BR	$1,530	$169,761	0.9%	C
3BR	$1,870	$248,081	0.75%	D
4BR	$2,010	$331,235	0.61%	D
5BR	$2,332	$496,661	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32303 (Tallahassee, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32303 in Tallahassee, FL, is set by HUD for 2026 as follows: - 0BR: $1190 - 1BR: $1300 - 2BR: $1460 (which represents 28.1% of the median household income) - 3BR: $1810 - 4BR: $1930 To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and the percentage of renters in the area. The occupancy rate is 89.1%, indicating that most units are occupied, and 48.8% of the population are renters. This suggests a relatively tight rental market where demand is high relative to supply. However, the Zillow median price for a 2BR home in this ZIP code is $167,460, which translates into a Price-to-FMR ratio of 9.6x. This means that the median home price is significantly higher than the rent it would generate based on the FMR. For example, a 2BR unit priced at $167,460 would have a monthly mortgage payment far exceeding the $1460 FMR, even when considering typical financing terms. Given the high cost of housing relative to the FMR, voucher holders face significant constraints. They can only afford units up to the FMR limit, which is much lower than the median home price. This implies that voucher holders might struggle to find suitable housing options within their budget, particularly in a market with high demand and limited supply. #### Affordability & Renter Profile ZIP code 32303 has a median household income of $62,275. With 48.8% of the population renting, this indicates a substantial portion of the community relies on rental properties. The affordability of housing is a critical issue, especially for those who depend on Section 8 vouchers. The FMR for a 2BR unit is $1460, which is 28.1% of the median household income. This suggests that while the FMR is affordable for some households, it may still be challenging for others, particularly those with lower incomes. Given the high occupancy rate, the market appears to be tight, with landlords likely having the upper hand in setting rental prices. #### Investor Angle From an investor’s perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. The Zillow median price for a 2BR home is $167,460, and the FMR is $1460. To determine if this is cash-flow positive, we must consider the mortgage payment, property taxes, insurance, maintenance costs, and other expenses associated with owning a rental property. Assuming a typical mortgage rate of 5% and a down payment of 20%, the monthly mortgage payment for a $167,460 home would be approximately $700. Adding property taxes (assuming 1% of the home value), insurance ($100/month), and maintenance costs ($100/month), the total monthly expenses would be around $967. This leaves a potential net cash flow of $493 per month, which is positive but slim. The investment grade for this ZIP code would be moderate to low due to the high purchase price relative to the FMR. Investors should be cautious about the potential for vacancy rates to rise if the market becomes less favorable, given the high occupancy rate and the limited number of units available at the FMR. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high cost of larger units relative to the FMR, investors should focus on smaller units such as 0BR and 1BR apartments. These units are more likely to be rented by voucher holders since they are closer to the FMR limits. For instance, a 0BR unit at $1190 would be easier to fill compared to a 2BR unit at $1460. 2. **Consider Location and Amenities**: Even though the FMR is low, there may still be opportunities to command slightly higher rents if the property is located in a desirable area or has added amenities. However, any increase above the FMR would mean that the unit is no longer accessible to voucher holders, so investors must balance the desire for higher rents with the goal of attracting tenants using Section 8 vouchers. 3. **Monitor Local Rental Market Trends**: Keep a close eye on local rental market trends and occupancy rates. If the occupancy rate drops below 89.1%, it could indicate a shift towards a more balanced market, making it easier to rent units at or near the FMR. Conversely, if the occupancy rate remains high, it may continue to be challenging to find tenants willing to pay only the FMR. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 32303 is to **Hold**. While there are some opportunities for cash-flow positive investments, particularly with smaller units, the high purchase price relative to the FMR makes it a challenging market. The tight rental market and high occupancy rate suggest that finding tenants willing to pay only the FMR will be difficult. Therefore, unless investors can secure properties at a discount or add value through renovations, the risk of negative cash flow is significant. Investors should carefully evaluate each opportunity and consider the broader economic context before committing to purchases in this ZIP code.

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.