Location: Jackson County, FL | Metro: Jackson County, FL
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 | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $128,075 | 0.76% | D |
| 3BR | $1,270 | $202,416 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 32460, located in Sneads, FL, provides a clear snapshot of potential rental yields under different scenarios. To start, we annualize the 2BR Fair Market Rent (FMR) set at $1,070 per month for FY 2026, which translates to an annual rent of $12,840. Using the median home value of $154,320, the implied gross yield for the Section 8 scenario would be approximately 8.3%. This is calculated by dividing the annualized rent by the median home value.
Next, considering the market rent of $785 per month as reported by the Census ACS, the annual market rent amounts to $9,420. When this figure is compared to the median home value, it results in an implied gross yield of about 6.1%. The calculation is similar, using the annual market rent divided by the median home value to determine the yield.
Given the 26.8% renter density in Sneads, FL, and the fact that the days on market (DOM) is not available, the more realistic scenario leans towards the market rent yield. Although the Section 8 yield appears higher at 8.3%, the actual occupancy rates and the percentage of the population willing to participate in the program must be considered. With only slightly over a quarter of the population being renters, the likelihood of achieving the higher Section 8 rent consistently is questionable without additional data on demand and vacancy rates.
The disparity between the two yields—8.3% for Section 8 and 6.1% for market rent—highlights the trade-offs landlords and small-portfolio investors face. While the higher yield from Section 8 rents is tempting, the lower market rent yield is based on current occupancy trends and may offer a more stable income stream. Investors should weigh these factors carefully when deciding whether to participate in the Section 8 program or to target the broader 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.