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 | $1,490 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,190 | $374,473 | 0.58% | F |
| 4BR | $2,350 | $485,508 | 0.48% | F |
| 5BR | $2,726 | $671,044 | 0.41% | F |
U.S. Census Bureau data (2024)
In ZIP code 32317, there are several risks to consider when investing in Section 8 properties. Tenant turnover is a significant concern, as the market rent stands at $2,638 compared to the Federal Market Rent (FMR) of $1,630 for FY 2024. This disparity suggests that tenants might be more likely to move if they find a cheaper option outside the program. Landlords should prepare for higher turnover rates, which can lead to increased administrative costs and potential delays in re-leasing units.
Vacancy exposure is another critical issue, especially given the average days on market (DOM) of 15 days. While this figure indicates a relatively quick leasing process, it also implies that landlords might face periods of vacancy due to the nature of the Section 8 program, where tenant mobility and voucher availability can cause delays. These short-term vacancies can affect cash flow and profitability.
The deferred maintenance exposure is substantial, considering the typical home value of $406,217 and the median income of $128,690. The gap between home values and median incomes suggests that residents might struggle to afford routine maintenance, leading to potential wear and tear issues over time. Landlords must be prepared to handle these maintenance needs, which can be costly and time-consuming.
However, these risks are somewhat mitigated by the high renter share of 10.8%. High renter density typically correlates with greater demand for housing vouchers, meaning that there is likely a steady pool of potential Section 8 tenants. This demand can provide a consistent stream of rental income, even if individual tenancies are shorter than desired.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.