Location: Jackson County, 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 | $1,290 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,520 | $126,326 | 1.2% | A |
| 3BR | $1,960 | $199,250 | 0.98% | C |
U.S. Census Bureau data (2024)
A decision tree for ZIP 32438 (Fountain, FL) regarding Section 8 investments hinges on three key questions:
1) Does the Fair Market Rent (FMR) of $1170 cover the debt service on a property valued at $156,754?
Yes. The FMR of $1170 can indeed support the debt service on a property priced at $156,754. Assuming an average mortgage rate and typical terms, the monthly payment would be around $950-$1050, comfortably under the FMR threshold. This indicates that a Section 8 tenant would likely be able to afford the rent.
No. If the debt service exceeds $1170, then purchasing a property for Section 8 in ZIP 32438 would not be financially viable. Landlords must ensure that the FMR covers their costs to avoid financial strain.
It depends. If the property's debt service is close to but slightly above the FMR, landlords might still consider buying if they anticipate additional income sources or are willing to subsidize the difference. However, this scenario is less favorable due to potential financial risks.
2) How does the market rent of $626 compare to the FMR?
Market rent is below FMR. With a market rent of $626, which is lower than the FMR of $1170, landlords could potentially charge higher rents to non-Section 8 tenants, making the investment more attractive. The higher FMR also suggests a greater likelihood of finding Section 8 tenants willing to pay up to $1170.
Market rent is at or above FMR. If the market rent were equal to or higher than the FMR, landlords would face competition from the private market, reducing the appeal of Section 8 tenants who are limited to paying $1170. In this case, the decision to invest would depend on the specific rental environment and landlord preferences.
3) Is there sufficient demand with 17.6% of residents renting and an unknown number of days on the market (DOM)?
Yes. A 17.6% rental rate, combined with the fact that the FMR significantly outpaces the market rent, indicates a robust demand for affordable housing. Even without knowing the exact DOM, the gap between market rent and FMR suggests that properties are likely to attract tenants quickly.
No. If the rental rate were much lower, or if the DOM were excessively high, indicating difficulty in renting out units, then investing in Section 8 properties in ZIP 32438 would be less advisable. However, based on the available data, the rental rate supports a positive outlook.
It depends. The unknown DOM adds uncertainty. If the DOM is unusually high, it could signal challenges in attracting tenants, even though the rental rate and FMR suggest otherwise. Landlords should investigate local real estate trends to make a more informed decision.
In conclusion, the data points to a favorable environment for Section 8 investments in ZIP 32438, assuming the debt service is manageable and the rental market dynamics align with the FMR advantage. Landlords should proceed with caution, especially regarding the unknown DOM, but the overall picture is promising.
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.