Location: Pensacola-Ferry Pass-Brent, 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 | $1,230 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $179,201 | 0.9% | C |
| 3BR | $2,210 | $278,902 | 0.79% | D |
| 4BR | $2,690 | $439,829 | 0.61% | D |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 32564, located in Holt, Florida, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 32564 in fiscal year 2024 is set at $1500, while the Census ACS reports the market rent at $807. This means that the FMR is $693 higher than the market rent, representing an increase of 85.9%.
The disparity between these figures makes the area a prime yield play for landlords and small-portfolio investors. With the FMR being substantially higher than the market rent, landlords can potentially secure higher rental incomes through the Section 8 program. This is particularly advantageous given the local economic conditions: Holt, FL has a median home value of $270,587 and a median household income of $59,875. Only 18.1% of residents are renters, indicating a competitive market for rental properties.
Voucher tenants provide a reliable source of income due to the federal government's guarantee of timely payments. In this context, the higher FMR ensures that landlords receive a more favorable rent compared to the open market. However, it's important to note that participating in the Section 8 program requires adherence to certain regulations and standards, which might incur additional costs or maintenance requirements.
In conclusion, the gap between the FMR and market rent in ZIP 32564 presents a clear opportunity for landlords and investors to maximize their yields. The guaranteed income from voucher tenants, combined with the higher FMR, offers a stable and profitable investment strategy in the current Holt, FL real estate market.
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.