Location: Panama City, FL | Metro: Panama City, 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 | $1,800 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,930 | $321,128 | 0.6% | D |
| 2BR | $2,100 | $380,178 | 0.55% | F |
| 3BR | $2,670 | $409,065 | 0.65% | D |
| 4BR | $3,260 | $526,590 | 0.62% | D |
| 5BR | $3,782 | $645,373 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 32407, located in Panama City Beach, FL, is characterized by a significant rental population, with 43.6% of residents being renters. This indicates a substantial demand for rental properties, suggesting that there could be a notable presence of Section 8 tenants in the area. However, the median household income stands at $80,831, which is relatively high compared to national averages. The typical market rent in this area is $1,608 per month, representing approximately 19.9% of the median household income. This percentage suggests that while rent is a considerable expense, it is still manageable for many households.
Comparing the market rent to the Fair Market Rent (FMR), which is set at $2,050 for FY 2024, reveals that the actual rents in ZIP 32407 are below the FMR threshold. This discrepancy means that landlords accepting Section 8 vouchers can potentially receive a higher subsidy than the current market rate, making the program attractive for property owners looking to secure stable tenants.
A landlord in ZIP 32407 should expect a diverse tenant pool, but with a particular focus on those who might benefit from the lower rent environment relative to their income levels. Given the high median income, many Section 8 tenants will likely be individuals or families with some form of additional income, such as part-time employment or other assistance programs, supplementing their housing vouchers. These tenants will be seeking affordable housing options within a desirable coastal community, where property values and rents can be higher due to tourism and recreational opportunities.
In summary, ZIP 32407 presents an opportunity for landlords interested in Section 8 tenants. While it is not a low-income area, the combination of a substantial rental population and the gap between market rents and FMRs makes it a viable option for those willing to participate in the housing voucher program. Tenants here will likely be financially responsible and capable of meeting the obligations of renting in a higher-cost area.
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.