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 | $77,750 | 1.57% | A+ |
| 3BR | $1,510 | $130,382 | 1.16% | B |
| 4BR | $1,620 | $190,593 | 0.85% | C |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 32324, which falls under the Chattahoochee, FL, Gadsden County, Tallahassee, FL HUD Metro FMR Area, is set at $1060 for fiscal year 2024. This figure represents the maximum amount that voucher holders can pay toward their housing costs. In contrast, the Census ACS reports the average market rent for the area at $643, indicating a significant gap between the HUD FMR and actual market rates.
Voucher tenants in ZIP 32324 will cashflow at the HUD FMR rate. The difference between the HUD FMR and the average market rent means that landlords can expect to see a positive cash flow when renting to voucher holders. For instance, with a $1060 FMR, landlords can cover their costs and potentially make a profit, even if they charge at the average market rate.
The median home value in the area is $118,718, providing a useful reference point for understanding the local real estate market. By comparing this to the average market rent, we find a rent-to-price ratio that favors rental investment over home ownership. Specifically, the ratio indicates that the cost of renting is significantly lower than the cost of buying, making rental properties more attractive to potential tenants.
The dynamics of days on market (DOM) and price-cut shares are not applicable in this scenario since the data provided does not include these metrics. However, given the favorable rent-to-price ratio and the positive cash flow potential, the strongest investor angle in ZIP 32324 is likely to be cashflow. Landlords and small-portfolio investors can expect steady income from Section 8 voucher tenants, who are guaranteed to pay the full HUD FMR amount, leading to reliable and predictable cash flows.
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.