Location: Tallahassee, FL | Metro: Tallahassee, FL HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
Tallahassee's ZIP 32330 is an ideal cash-flow anchor for a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for FY 2024 is set at $1060, significantly higher than the market average rental rate of $727. This spread ensures that landlords can rely on a steady stream of government-subsidized income that exceeds typical market rates.
The high FMR is particularly beneficial because it covers a substantial portion of the housing costs, reducing the financial risk for landlords. With a guaranteed payment above market rates, this ZIP code provides stability and predictability in rental income, which is crucial for maintaining positive cash flow.
ZIP 32330 lacks data on median home values and appreciation metrics, making it less suitable for strategies focused on property appreciation. However, the 46.3% renter share indicates a robust demand for rental properties, supporting the idea that this area will continue to attract tenants. Coupled with the median income of $47,572, it's evident that there is a need for affordable housing options, aligning well with the objectives of a Section 8 program.
In conclusion, ZIP 32330 should be considered a cash-flow anchor due to the favorable spread between the FMR and market rates, ensuring landlords receive reliable income that surpasses typical rental prices. This makes it an excellent choice for those looking to stabilize their investment portfolios with predictable returns.
Data Sources: FMR data from HUD (2027). 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.