Location: Crestview-Fort Walton Beach-Destin, FL | Metro: Crestview-Fort Walton Beach-Destin, FL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,880 |
| 1 Bedroom | $2,260 |
| 2 Bedrooms | $2,530 |
| 3 Bedrooms | $3,470 |
| 4 Bedrooms | $4,230 |
| 5 Bedrooms | $4,907 |
| 6 Bedrooms | $5,496 |
| 7 Bedrooms | $5,936 |
| 8 Bedrooms | $6,233 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 32542, located within the Crestview-Fort Walton Beach-Destin, FL HUD Metro FMR Area, reveals several key points regarding its viability for Section 8 investments.
Firstly, the rent math does not favorably align. The Fair Market Rent (FMR) set at $2140 for FY 2024 is notably lower than the market rent of $2,260 as reported by the Census ACS. This indicates that landlords might find themselves earning less per unit when participating in the Section 8 program compared to market rates.
Secondly, the acquisition affordability is questionable due to the lack of specific data on median home values, days on market (DOM), and the percentage of homes that have undergone price reductions. Without these figures, it's difficult to assess the cost and time required to acquire properties in this area, which could impact investment returns.
Thirdly, there is a strong tenant demand in the area. With a population of 3,578 and a 100.0% renter share, all residents are potential tenants, suggesting robust demand for rental properties. This high tenant demand can be leveraged to fill vacancies quickly and maintain occupancy levels.
In conclusion, while ZIP 32542 presents a solid tenant demand scenario, the rent math working against the expected income and the absence of critical acquisition metrics suggest caution. Landlords should carefully consider the financial implications of accepting lower rents and the uncertainties around property acquisition costs before investing in this area.
Data Sources: FMR data from HUD (2027). 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.