Location: Pensacola-Ferry Pass-Brent, FL | Metro: Pensacola-Ferry Pass-Brent, FL MSA
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 | $1,010 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $108,413 | 1.23% | A |
| 3BR | $1,760 | $157,379 | 1.12% | B |
| 4BR | $2,150 | $215,773 | 1% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 32505, located in Pensacola, FL, within the Pensacola-Ferry Pass-Brent, FL MSA metro area, reveals several key insights for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for ZIP 32505 in fiscal year 2024 is set at $1140, which is notably lower than the market rent of $1,486 (ZORI). This indicates that landlords may struggle to cover their costs if they only charge the FMR rate. To be competitive and viable, they should aim closer to the ZORI figure.
Regarding the affordability of acquisition, the median home value in ZIP 32505 is $148,955. With an average Days on Market (DOM) of 34 days and only 0.3% of homes experiencing a price cut, it suggests that the housing market is relatively stable and not overly saturated with distressed properties. This makes the area moderately attractive for acquisition, especially considering the lower median home values compared to larger metropolitan areas.
The third point to consider is tenant demand. ZIP 32505 has a population of 27,877, with 47.7% of residents being renters. This substantial rental market indicates a steady demand for housing units, particularly those that qualify for Section 8 assistance. Given the high percentage of renters, landlords can expect a consistent pool of potential tenants.
In conclusion, while the rent math does not align perfectly with the market conditions, the relatively low median home value and strong tenant demand make ZIP 32505 a viable investment opportunity for landlords and small-portfolio investors. However, they must be prepared to charge closer to the ZORI to ensure profitability. The stable housing market also supports easier acquisitions without significant price negotiations. With a robust 47.7% renter share, securing tenants should not pose a challenge.
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.