Location: Walton County, FL | Metro: Walton 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 | $1,100 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $227,391 | 0.63% | D |
| 3BR | $1,990 | $351,443 | 0.57% | F |
| 4BR | $2,410 | $483,007 | 0.5% | F |
| 5BR | $2,796 | $552,997 | 0.51% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 32439 in Freeport, FL, are significant. Firstly, tenant turnover poses a substantial challenge. The market rent for properties in this area is $2,171, while the Fair Market Rent (FMR) for Section 8 tenants is set at $1,210 for FY 2024. This discrepancy can lead to higher turnover rates as Section 8 tenants may struggle to afford the difference between the FMR and the market rent.
Vacancy exposure is another concern, especially given the 71-day Days on Market (DOM) average. A longer DOM suggests that finding tenants can be challenging, which increases the risk of prolonged vacancies. Additionally, the deferred maintenance exposure is notable. With a typical home value of $392,482 and a median income of $83,227, landlords may face difficulties in maintaining properties to the required standards without overcharging tenants, which could further exacerbate turnover issues.
However, these risks must be weighed against the high concentration of renters in the area. The renter share in ZIP 32439 stands at 19.9%, indicating a robust demand for rental properties. High renter density generally translates into a higher number of voucher holders seeking housing, thus potentially stabilizing occupancy rates. Despite the challenges, the presence of a large tenant pool willing to use vouchers can offset some of the financial risks associated with Section 8 properties.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.