Location: Crestview-Fort Walton Beach-Destin, FL | Metro: Crestview-Fort Walton Beach-Destin, 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 | $1,310 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $177,700 | 0.99% | C |
| 3BR | $2,410 | $259,146 | 0.93% | C |
| 4BR | $2,940 | $347,008 | 0.85% | C |
| 5BR | $3,410 | $399,077 | 0.85% | C |
U.S. Census Bureau data (2024)
The ZIP code 32536, located in Crestview, Florida, presents an interesting scenario for both renters and landlords alike. The median household income here stands at $78,119, which provides a baseline for understanding the financial landscape of the area. When compared to the market rate for rent, which is set at $1,717 per month (ZORI), it becomes evident that there is a significant challenge for many residents to afford housing without assistance.
The federal government offers some relief through the Housing Choice Voucher program, commonly known as Section 8. For ZIP 32536 in fiscal year 2024, the Fair Market Rent (FMR) is set at $1,470. This means that a household receiving a voucher could potentially pay less for rent, up to this standard amount. However, the disparity between the ZORI ($1,717) and the FMR ($1,470) highlights a notable affordability gap for renters who do not qualify for or receive vouchers.
In ZIP 32536, where 29.0% of the 25,599 population are renters, the competition among landlords is likely to be influenced by this gap. Landlords who accept vouchers might find themselves catering to a segment of the market that can only afford housing at the FMR level. On the other hand, those who focus on cash-paying tenants will need to ensure that their properties offer value that justifies the higher market rate, especially considering the median income of the area.
The takeaway for landlords is clear: accepting vouchers can stabilize cash flow and reduce vacancy rates, given the number of renters who rely on such assistance. However, targeting cash-paying tenants requires positioning properties to attract households willing to pay above the voucher standard, perhaps through amenities or location advantages. Understanding these dynamics is crucial for crafting a successful rental strategy in Crestview, Florida.
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.