Location: Tallahassee, FL | Metro: Tallahassee, 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 | $990 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $149,046 | 0.82% | C |
| 3BR | $1,510 | $210,981 | 0.72% | D |
| 4BR | $1,620 | $272,575 | 0.59% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 32305, located in Tallahassee, FL, does not favor Section 8 participation. The Fair Market Rent (FMR) set at $1,160 for fiscal year 2024 is notably lower than the actual market rent, which stands at $1,413. This discrepancy means landlords would have to accept a lower rental income if they opt into the Section 8 program.
Acquisition in this area is relatively affordable, with a median home value of $193,789. However, the lack of data on days on market (DOM) and the fact that only 0.2% of listings involve price cuts suggest that while homes are not overpriced, the market may be slow-moving, indicating less liquidity for potential investments.
Tenant demand in ZIP 32305 is substantial. With a total population of 19,384, nearly 40.7% are renters, creating a robust pool of potential tenants. This high percentage of renters implies a steady demand for housing units, particularly those that are affordable.
Given these factors, ZIP 32305 presents a mixed picture for Section 8 landlords and small-portfolio investors. While there is strong tenant demand and the cost of acquiring property is reasonable, the financial benefits of participating in the Section 8 program are limited due to the significant gap between the FMR and the actual market rent. Landlords should carefully weigh the pros and cons before deciding to participate in the Section 8 program in this area. The decision will largely depend on their tolerance for lower rental income in exchange for guaranteed payment and a stable tenant base.
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.