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 | $1,180 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $161,446 | 0.98% | C |
| 3BR | $2,080 | $243,478 | 0.85% | C |
| 4BR | $2,490 | $329,205 | 0.76% | D |
| 5BR | $2,888 | $350,985 | 0.82% | C |
U.S. Census Bureau data (2024)
The ZIP code 32506, located in Pensacola, Florida, presents an interesting landscape for both renters and landlords. The median income here stands at $62,486, while the market rate for rent is set at $1,499 per month, according to the Zillow Rent Index (ZORI). This suggests that the typical household in ZIP 32506 would spend approximately 28.7% of their gross annual income on rent alone if they were to pay the market rate.
In contrast, the Fair Market Rent (FMR) for the ZIP code in fiscal year 2024, which is the standard used for calculating Housing Choice Voucher payments, is set at $1,270. This means that a household receiving a voucher could expect to pay a maximum of 30% of their adjusted monthly income towards rent, with the remainder covered by the voucher. Based on the median income, this implies that the average household could reasonably afford the FMR rate without significant strain.
The area has a substantial rental market, with 39.7% of the 34,549 residents being renters. Given these numbers, the affordability gap between the ZORI and FMR rates becomes evident. Landlords face competition not only from other property owners but also from the financial support offered through housing vouchers, which can make lower rent rates more attractive to potential tenants.
For landlords considering their strategy, the takeaway is clear. While charging the market rate of $1,499 might seem lucrative, it risks leaving a portion of the rental market untapped due to affordability concerns. On the other hand, accepting vouchers at the $1,270 FMR rate ensures a steady stream of income from reliable tenants who benefit from government assistance. This strategy could be particularly advantageous given the high percentage of renters in the area.
Ultimately, landlords should weigh the benefits of higher rents against the stability and broader appeal of voucher-supported units. In ZIP 32506, the decision to accept vouchers could provide a competitive edge in a crowded rental market and align better with the economic realities faced by many households.
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.