Location: Holmes County, FL | Metro: Crestview-Fort Walton Beach-Destin, 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 | $1,230 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,430 | $147,118 | 0.97% | C |
| 2BR | $1,610 | $168,454 | 0.96% | C |
| 3BR | $2,210 | $233,360 | 0.95% | C |
| 4BR | $2,690 | $299,923 | 0.9% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 32433, located in Defuniak Springs, Florida, reveals key insights into its viability for rental investment.
The rent math does not favorably align. The Fair Market Rent (FMR) for FY 2024 is set at $1,030, whereas the market rent, as indicated by ZORI, stands at $1,400. This suggests that the actual rents commanded exceed the government's benchmark, potentially indicating a challenging environment for securing tenants under Section 8 programs.
Acquisition in this area is relatively affordable. With a median home value of $231,325, purchasing properties is within reach for many investors. However, the lack of data on days on market (DOM) and the low price-cut share of 0.2% imply a stable market where homes do not linger long on the market and sellers are reluctant to lower their asking prices, which could make negotiations difficult.
Tenant demand appears robust given the total population of 19,746 and a significant 25.4% renter share. This indicates a sizeable pool of potential tenants who are willing to rent, which is crucial for maintaining occupancy rates.
Verdict: While Defuniak Springs offers an affordable entry point for property acquisition with a median home value of $231,325, the discrepancy between the FMR of $1,030 and the market rent of $1,400 presents a challenge for Section 8 landlords. Despite this, the strong tenant demand, evidenced by the 25.4% renter share, supports the idea that properties can be rented out effectively, albeit not under the more restrictive Section 8 program. For small-portfolio investors looking to diversify beyond government-subsidized rentals, this zip code holds promise due to its reasonable home values and substantial rental market.
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.