Location: Panama City, 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 | $1,470 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $226,922 | 0.76% | D |
| 3BR | $2,190 | $298,537 | 0.73% | D |
| 4BR | $2,670 | $409,844 | 0.65% | D |
| 5BR | $3,097 | $556,042 | 0.56% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 32444, which encompasses Lynn Haven, FL, in Bay County, operate based on the Specific Area Fair Market Rent (SAFMR) rates. For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2024 is set at $1750. This rate is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
The local market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1846. This figure represents the average rent paid by tenants in the area without any subsidies, giving landlords a benchmark for comparison.
A Section 8 voucher does not cover the entire rent amount. Instead, it reimburses the landlord for the difference between the tenant's contribution and the SAFMR. The tenant's portion is typically 30% of their adjusted income. If we assume an average adjusted income for a tenant in this scenario, the tenant would pay approximately $525 towards the rent (30% of $1750).
In addition to the base rent, there are utility allowances. These vary but can be estimated around $300-$400 per month, depending on the actual costs incurred by the tenant. Therefore, if we take the higher end of the utility allowance range, the total monthly payment to the landlord would be around $1750.
To calculate the reimbursement gap or surplus, compare the total payment (rent plus utilities) to the local market rent. In this case, the total payment is $1750, while the ZORI is $1846. This results in a reimbursement gap of $96 per month. Landlords must decide whether they are willing to accept this lower rate compared to the market or seek other ways to offset the difference, such as reducing maintenance costs or increasing efficiency.
It’s important to note that the SAFMR rate is designed to ensure affordability for low-income families while also providing a stable source of income for landlords. However, the reimbursement gap can impact profitability, especially when considering the administrative burden and potential delays in payments associated with the Section 8 program.
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.