Section 8 Fair Market Rent (FMR) for ZIP 32503 - 2027

Location: Pensacola-Ferry Pass-Brent, FL | Metro: Pensacola-Ferry Pass-Brent, FL MSA

Investment Score for ZIP 32503

Monthly Rent (2BR)

$1,500

Median Price (2BR)

$200,085

1% Rule

0.75%

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,120
1 Bedroom	$1,320
2 Bedrooms	$1,500
3 Bedrooms	$1,970
4 Bedrooms	$2,360
5 Bedrooms	$2,738
6 Bedrooms	$3,067
7 Bedrooms	$3,312
8 Bedrooms	$3,478

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,320	$144,787	0.91%	C
2BR	$1,500	$200,085	0.75%	D
3BR	$1,970	$317,124	0.62%	D
4BR	$2,360	$459,229	0.51%	F
5BR	$2,738	$685,648	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

33,559

Median Household Income

$71,411

Housing Units

14,428

Renter Percentage

30.8%

Occupancy Rate

90.6%

Renter Occupied

4,019

The analysis of ZIP code 32503 in Pensacola, FL, reveals a market that leans towards steady cash flow rather than high-yield/low-stability. This conclusion is driven by several key figures from the data provided.

Firstly, the Fair Market Rent (FMR) for ZIP 32503 in fiscal year 2024 is set at $1,230, which is notably lower than the market rent of $1,584. This suggests that while landlords can still achieve above-average rental income, they should expect a certain level of competition and scrutiny from tenants who are aware of the FMR guidelines.

Secondly, the median home value in the area is $294,308. Given the relatively moderate home values, it indicates that the area is not dominated by luxury properties, which would typically see higher rental yields but also higher risks associated with tenant turnover and maintenance costs.

In terms of stability, the percentage of renters stands at 30.8%, indicating a significant portion of the population relies on rental housing. The Days on Market (DOM) average of 43 days shows that properties are not remaining unsold or unrented for extended periods, suggesting a stable demand for rentals.

Furthermore, the median household income of $71,411 supports the notion that there is a reliable tenant base capable of paying consistent rents. While this income figure is not exceptionally high, it aligns well with the rental prices and provides assurance regarding the ability of residents to meet their financial obligations.

To summarize:

The FMR of $1,230 is below the market rent of $1,584, offering a reasonable yield without the volatility often seen in areas with extreme price discrepancies.
The median home value of $294,308 suggests a middle-class neighborhood, conducive to steady cash flow.
The 30.8% rental rate and 43-day DOM indicate a stable demand for rental properties.
The median income of $71,411 supports the likelihood of timely rent payments and low vacancy rates.

Based on these figures, ZIP 32503 presents an opportunity for landlords and small-portfolio investors seeking a balance between yield and stability. It is not a high-yield/low-stability market but rather a zone where steady cash flow is more likely due to the consistent rental demand and moderate property values.

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.