Section 8 Fair Market Rent (FMR) for ZIP 32401 - 2027

Location: Panama City, FL | Metro: Panama City, FL HUD Metro FMR Area

Investment Score for ZIP 32401

C
Monthly Rent (2BR)
$1,520
Median Price (2BR)
$172,340
1% Rule
0.88%
Annual Yield
10.58%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,290
1 Bedroom$1,340
2 Bedrooms$1,520
3 Bedrooms$1,960
4 Bedrooms$2,430
5 Bedrooms$2,819
6 Bedrooms$3,157
7 Bedrooms$3,410
8 Bedrooms$3,581

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,340 $151,328 0.89% C
2BR $1,520 $172,340 0.88% C
3BR $1,960 $229,846 0.85% C
4BR $2,430 $337,103 0.72% D
5BR $2,819 $524,385 0.54% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
18,947
Median Household Income
$52,523
Housing Units
10,522
Renter Percentage
39.7%
Occupancy Rate
85.1%
Renter Occupied
3,551

1240 is the Fair Market Rent (FMR) for ZIP 32401 in Panama City, FL, for fiscal year 2024, indicating the maximum amount a Section 8 tenant can pay for housing. In contrast, the market rent, known as ZORI, stands at 1662, showing landlords could potentially charge significantly higher rents outside of Section 8. The median home value in this area is 212875, which suggests a moderate housing market where both homeownership and rental properties coexist. 39.7% of the population in ZIP 32401 are renters, reflecting a substantial demand for rental properties. The median income of 52523 provides insight into the economic capacity of residents, though it's important to note that Section 8 eligibility is based on lower income thresholds. Properties in this region experience an average of 53 days on the market before being rented, which is a relatively quick turnover. Furthermore, only 0.3% of listings require price cuts, demonstrating a strong market where landlords can maintain competitive pricing without frequent adjustments.

Given these figures, the verdict on Section 8 participation in ZIP 32401 is positive. Landlords can expect steady demand, reasonable FMR rates that ensure a predictable income stream, and a market that supports quick property turnovers without the need for significant price reductions.

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.