Section 8 Fair Market Rent (FMR) for ZIP 32504 - 2027

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

Investment Score for ZIP 32504

Monthly Rent (2BR)

$1,530

Median Price (2BR)

$157,401

1% Rule

0.97%

Annual Yield

11.66%

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	$1,140
1 Bedroom	$1,340
2 Bedrooms	$1,530
3 Bedrooms	$2,010
4 Bedrooms	$2,410
5 Bedrooms	$2,796
6 Bedrooms	$3,132
7 Bedrooms	$3,383
8 Bedrooms	$3,552

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
2BR	$1,530	$157,401	0.97%	C
3BR	$2,010	$263,914	0.76%	D
4BR	$2,410	$380,037	0.63%	D
5BR	$2,796	$606,036	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

22,153

Median Household Income

$72,672

Housing Units

10,591

Renter Percentage

37.4%

Occupancy Rate

92.8%

Renter Occupied

3,677

To decide if you should buy in ZIP code 32504 (Pensacola, FL) for Section 8 investments, follow this decision tree:

If the Fair Market Rent (FMR) of $1280 covers your debt service on a $270,446 property:
- Yes, proceed to the next step.
If the FMR does not cover your debt service:
- No, buying in this area would not be financially viable under Section 8 guidelines.

The FMR of $1280 is calculated based on the fiscal year 2024 budget and must be sufficient to meet the mortgage payments, insurance, property taxes, and maintenance costs of the property. For a $270,446 property, the monthly debt service needs to be less than or equal to $1280 for the investment to make sense.

If the Zillow Rent Index (ZORI) of $1,457 is above the FMR:
- It depends. The higher market rent suggests potential for non-Section 8 tenants, but focus on Section 8 means you'll be limited to the $1280 cap.
If the ZORI is at or below the FMR:
- Yes, there's alignment between market conditions and Section 8 payment standards.

The ZORI represents the average rent that tenants are willing to pay in the market. If it's above the FMR, you might consider whether you can attract tenants outside of the Section 8 program who are willing to pay more.

If the 37.4% of renters combined with a 22-day days-on-market (DOM) indicates strong demand:
- Yes, the rental market shows healthy demand, which is crucial for maintaining occupancy rates.
If the demand indicators are weak:
- No, weak demand could lead to prolonged vacancies, reducing your income and increasing risk.

A 37.4% rental rate implies a moderate to strong interest in renting properties, while a 22-day DOM suggests that properties are typically rented out relatively quickly. This combination supports a stable cash flow for Section 8 properties.

In conclusion, purchasing in ZIP 32504 for Section 8 investments is feasible if the FMR covers your debt service, the market rent aligns with or is lower than the FMR, and there is sufficient demand to ensure consistent occupancy.

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.