Section 8 Fair Market Rent (FMR) for ZIP 32548 - 2027
Location: Crestview-Fort Walton Beach-Destin, FL | Metro: Crestview-Fort Walton Beach-Destin, FL HUD Metro FMR Area
Investment Score for ZIP 32548
D
Monthly Rent (2BR)
$1,910
Median Price (2BR)
$290,479
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 | $1,420 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
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 |
$1,710 |
$317,187 |
0.54% |
F |
| 2BR |
$1,910 |
$290,479 |
0.66% |
D |
| 3BR |
$2,620 |
$330,413 |
0.79% |
D |
| 4BR |
$3,190 |
$411,265 |
0.78% |
D |
| 5BR |
$3,700 |
$529,830 |
0.7% |
D |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$65,342
To determine if a landlord should invest in ZIP 32548 (Fort Walton Beach, FL) for Section 8 properties, follow these steps:
- Step 1: Clear Debt Service
- Yes: The Fair Market Rent (FMR) of $1540 for ZIP 32548 in fiscal year 2024 can cover the debt service on a property valued at $338,663. This indicates that the rental income is sufficient to meet the mortgage payments and other financing costs.
- No: If the debt service exceeds $1540 per month, then the FMR does not clear the debt service, making it an unwise investment based solely on Section 8 income.
- Step 2: Compare Market Rent to FMR
- Above: The Zillow Observed Rent Index (ZORI) for Fort Walton Beach is $1730, which is above the FMR of $1540. This suggests that landlords could potentially earn more by renting to non-Section 8 tenants.
- At or Below: If the market rent were at or below the FMR, then there would be little financial incentive to consider non-Section 8 tenants over those participating in the program.
- Step 3: Assess Demand
- Yes: With 42.0% of residents being renters and a Days on Market (DOM) of 52 days, there is sufficient demand for rental properties. This combination of a relatively high percentage of renters and a moderate DOM indicates that rental units are generally occupied quickly.
- No: If the percentage of renters were significantly lower or the DOM much higher, it would suggest a weaker rental market, making it less attractive for landlords to invest in Section 8 properties.
- It Depends: For some investors, the balance between the percentage of renters and DOM might still require further analysis. For instance, understanding the local job market, population growth trends, and tenant preferences could provide additional insights into whether the demand is stable or growing.
The decision to purchase a Section 8 property in ZIP 32548 hinges on these factors. If the FMR clears the debt service, and market rents are above the FMR, but there's also sufficient demand indicated by the renter percentage and DOM, then it's a favorable environment for such investments. However, if any of these conditions are not met, the investment becomes less attractive.
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.