Section 8 Fair Market Rent (FMR) for ZIP 32541 - 2027

Location: Crestview-Fort Walton Beach-Destin, FL | Metro: Crestview-Fort Walton Beach-Destin, FL HUD Metro FMR Area

Investment Score for ZIP 32541

Monthly Rent (2BR)

$2,470

Median Price (2BR)

$506,571

1% Rule

0.49%

Annual Yield

5.85%

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	$1,840
1 Bedroom	$2,210
2 Bedrooms	$2,470
3 Bedrooms	$3,390
4 Bedrooms	$4,130
5 Bedrooms	$4,791
6 Bedrooms	$5,366
7 Bedrooms	$5,795
8 Bedrooms	$6,085

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	$2,210	$383,799	0.58%	F
2BR	$2,470	$506,571	0.49%	F
3BR	$3,390	$694,350	0.49%	F
4BR	$4,130	$1,108,865	0.37%	F
5BR	$4,791	$1,984,758	0.24%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

18,855

Median Household Income

$95,124

Housing Units

16,496

Renter Percentage

31.6%

Occupancy Rate

51.2%

Renter Occupied

2,669

The ZIP code 32541, encompassing Destin, Florida, is renowned for its pristine beaches and vibrant tourism industry, making it an attractive location for both residents and visitors alike. This coastal area experiences high demand for rental properties due to its appeal as a vacation destination and growing population of year-round residents.

The Fair Market Rent (FMR) for ZIP 32541 is set at $2100 for the fiscal year 2024, indicating the government's benchmark for affordable housing standards.
The market rent, as measured by Zillow's ZORI (Zillow Observed Rent Index), stands at $1,959, reflecting the actual average rent paid for rental properties in the area.
The median home value in Destin is $616,233, suggesting that homeownership is relatively expensive compared to other areas in the state.
Renters make up 31.6% of the total population, showing a significant portion of the community prefers leasing over owning.
The days on market (DOM) for rental listings is 99 days, which is higher than the national average, indicating a moderate pace in the rental market.
The median household income in the area is $95,124, providing insight into the economic stability and spending power of local residents.

In summary, the rental market in Destin, Florida, is robust yet moderately paced, with a strong presence of renters and a median income that supports higher rental rates. The FMR and ZORI figures suggest that rental properties can be priced competitively while still adhering to affordability benchmarks. Given the median home values, investment in rental properties may offer a more accessible entry point for those looking to capitalize on the area's real estate potential.

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.