Location: Holmes County, FL | Metro: Washington County, 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 | $860 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $162,371 | 0.62% | D |
| 3BR | $1,290 | $217,356 | 0.59% | F |
| 4BR | $1,450 | $289,236 | 0.5% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 32425 in Florida for the fiscal year 2026 is set at $1,090. This figure represents the maximum amount the U.S. Department of Housing and Urban Development (HUD) will pay landlords under the Section 8 program for a given unit in this area. It's important to note that this is not the amount you can charge tenants as rent; it's the reimbursement cap for landlords participating in the Section 8 housing choice voucher program.
In comparison, the average rent for the same ZIP code is $875, according to recent Census American Community Survey (ACS) data. This suggests that the FMR is higher than the typical market rate, which can be advantageous for landlords who want to ensure they receive a fair payment for their properties.
The demand for rentals in ZIP code 32425 is strong, with 24.5% of the population being renters. This indicates a significant portion of the community looking for affordable housing options, making it a viable market for Section 8 rentals. The median household income in the area is around $194,211, which gives you an idea of the general economic status but remember, Section 8 tenants typically have lower incomes.
To make your decision to enter the Section 8 market with your first rental property, you must verify that your property meets HUD's Housing Quality Standards (HQS). These standards ensure that the rental units are safe and decent living conditions for tenants. While the specifics can vary, HQS generally cover areas such as structural soundness, heating, plumbing, and electrical systems. A thorough inspection and any necessary repairs to meet these standards are critical before signing up for the program.
By aligning your property's rent with the FMR of $1,090, you can ensure you're receiving the maximum reimbursement allowed under the Section 8 program. This, combined with a high renter share and competitive market rates, makes ZIP code 32425 a promising area for your first Section 8 rental investment.
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.