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 | $1,380 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,850 | $209,069 | 0.88% | C |
| 3BR | $2,540 | $316,556 | 0.8% | C |
| 4BR | $3,090 | $425,739 | 0.73% | D |
| 5BR | $3,584 | $528,222 | 0.68% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 32547, Fort Walton Beach, FL, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1400 per month for fiscal year 2024. This figure is specific to this ZIP code and reflects the targeted rental assistance level for the area.
Local market rents, as indicated by ZORI (Zillow Observed Rent Index), stand at $1,916 for a similar two-bedroom unit. This represents the average rent charged for such properties in the local market. When a landlord participates in the Section 8 program, they agree to rent their property to eligible tenants at a rate that does not exceed the SAFMR.
A voucher holder pays 30% of their adjusted income towards rent. For simplicity, let's assume an adjusted income of $1,000, meaning the tenant would contribute $300 towards rent. Additionally, there is a utility allowance which varies but typically ranges around $300-$400. Therefore, if we take the utility allowance at $350, the total monthly payment to the landlord would be $1400, comprising $300 from the tenant and $1100 from the housing authority.
The SAFMR of $1400 is the maximum amount that can be reimbursed by the housing authority, even if the local market rent is higher. This means that landlords must adjust their expectations to match the SAFMR rather than the ZORI when renting to voucher holders.
In ZIP 32547, the reimbursement gap for a two-bedroom unit is the difference between the local market rent ($1,916) and the SAFMR ($1400). This results in a reimbursement gap of $516 per month. In other words, landlords will receive $516 less per month than the average market rent for a two-bedroom apartment in this area.
To summarize, participating in Section 8 in Fort Walton Beach, FL, involves accepting a lower rent payment compared to the local market rate. Landlords should understand that the SAFMR of $1400 is the ceiling for reimbursement, regardless of the actual market conditions. This leads to a consistent reimbursement gap where landlords receive less than the average local rent, specifically $516 less for a two-bedroom unit in ZIP 32547.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.