Location: Washington 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 | $1,290 |
| 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 | $168,439 | 0.9% | C |
| 3BR | $1,960 | $288,488 | 0.68% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP 32462, located in Vernon, FL within the Washington County, FL HUD Metro FMR Area, reveals several key points regarding its viability for real estate investment.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area is set at $1170 for fiscal year 2024, according to HUD guidelines. However, the Census ACS reports a lower market rent of $932. This discrepancy suggests that landlords might find it challenging to justify higher rents based on the current market conditions, potentially leading to vacancies if they aim to charge closer to the FMR.
Moving on to the affordability of acquisitions, the median home value in ZIP 32462 stands at $184,651. Given that the data does not provide specifics on the number of days on market (DOM) or the percentage of homes that required price cuts, it's difficult to assess how competitive the local real estate market is. Nonetheless, the median home value indicates that property purchases could be relatively affordable compared to other markets, especially for small-portfolio investors looking to enter the rental market.
Lastly, there is a need to consider tenant demand. With a population of 3,920 and a 21.1% renter share, the area has a modest pool of potential tenants. While this percentage is not exceptionally high, it still represents a significant number of individuals who would likely be interested in renting properties. This demand can be leveraged effectively if landlords can offer competitive rents and attractive living conditions.
In summary, while the rent math in ZIP 32462 poses a challenge due to the disparity between FMR and actual market rents, the acquisition costs appear manageable. The tenant demand is present but limited by the small population size. Landlords should focus on offering competitive rents and maintaining high-quality properties to attract and retain tenants. Additionally, diversifying their portfolio to include properties that cater to different income levels can help mitigate risks associated with relying solely on the FMR-based rental pricing.
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.