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 | $1,050 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,540 | $249,589 | 0.62% | D |
| 4BR | $1,660 | $303,717 | 0.55% | F |
U.S. Census Bureau data (2024)
In ZIP code 32343, the economics of Section 8 housing involve understanding the difference between the Subsidy Allocations Federal Market Rent (SAFMR) and the actual local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1230. This figure represents the maximum amount that the government will subsidize for a rental unit in this specific ZIP code. However, the local market rent, according to Census ACS data, is lower at $1110.
A landlord participating in the Section 8 program receives a subsidy from the government to cover the difference between the tenant's contribution and the total rent. The tenant typically pays 30% of their adjusted income toward rent, which includes the cost of utilities. If we assume an average tenant income that results in a payment of approximately $369 towards rent (30% of a household income around $1230), the government would then pay the remaining balance up to the SAFMR limit.
The calculation works as follows: if a tenant's share is $369, and the SAFMR is $1230, the government would subsidize $861 per month ($1230 - $369). This is the reimbursement a landlord can expect for a two-bedroom unit in ZIP 32343 under the Section 8 program. Additionally, there might be utility allowances that vary based on the region and type of unit but are usually capped at a certain amount per household.
Given the local market rent is $1110, a landlord could potentially see a surplus if they charge less than the SAFMR. However, if the landlord charges exactly $1230, and the tenant's share is $369, the landlord would receive the full SAFMR amount without any additional surplus from the local market rent. In this case, the landlord would have no reimbursement gap, as the SAFMR aligns with the maximum allowable rent under the program.
To summarize, for a two-bedroom apartment in ZIP 32343, the typical reimbursement scenario under the Section 8 program results in a landlord receiving the full SAFMR of $1230, with the tenant contributing $369 and the government covering $861. Since the SAFMR exceeds the local market rent, landlords should consider whether charging the higher SAFMR rate is feasible given the local rental environment. If they do, there would be no surplus or gap beyond the SAFMR rate.
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.