Section 8 Fair Market Rent (FMR) for ZIP 32435 - 2027

Location: Holmes County, FL | Metro: Walton County, FL HUD Metro FMR Area

Investment Score for ZIP 32435

Monthly Rent (2BR)

$1,230

Median Price (2BR)

$152,239

1% Rule

0.81%

Annual Yield

9.7%

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	$960
1 Bedroom	$1,120
2 Bedrooms	$1,230
3 Bedrooms	$1,710
4 Bedrooms	$2,060
5 Bedrooms	$2,390
6 Bedrooms	$2,677
7 Bedrooms	$2,891
8 Bedrooms	$3,036

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
2BR	$1,230	$152,239	0.81%	C
3BR	$1,710	$232,079	0.74%	D
4BR	$2,060	$308,588	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

6,664

Median Household Income

$65,313

Housing Units

3,035

Renter Percentage

23.0%

Occupancy Rate

87.3%

Renter Occupied

609

Defuniak Springs, FL, located in Walton County, is a small city with a population under 5,000 residents, offering a tranquil living environment. The real estate market here is characterized by modest housing costs and rental rates, making it an attractive location for both homeowners and investors seeking stable returns.

The Fair Market Rent (FMR) for ZIP 32435 in fiscal year 2024 is set at $1030, indicating the government's benchmark for what is considered a reasonable rent for a two-bedroom apartment in the area.
The actual market rent, according to the latest Census American Community Survey (ACS), is slightly lower at $946, reflecting the true rental rates landlords can expect in Defuniik Springs.
The median home value in the area is $242,237, which is below the national average and suggests that the local real estate market is relatively affordable for potential buyers.
Renters make up 23.0% of the housing market, showing that a significant portion of the population prefers renting over owning, which could be beneficial for landlords looking to lease properties.
The median household income in ZIP 32435 is $65,313, providing insight into the economic capacity of the residents to pay rent or afford homes.
The Days on Market (DOM) figure is listed as N/A, which means there isn't sufficient data to determine how long properties typically stay on the market before selling. This could indicate either a steady sales pace or a lack of recent transactions.

In summary, the real estate market in Defuniak Springs, FL, offers a balanced opportunity for investors. With rental rates slightly below the FMR and a decent share of renters, the area supports a viable rental property investment. The median home values suggest that purchasing property here is less expensive compared to many other parts of the country, making it easier for investors to enter the market. However, the absence of DOM data might require further investigation into the local real estate trends to fully understand the market dynamics. Given the moderate income levels, landlords should price their rentals accordingly to remain competitive and attractive to tenants.

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.