Section 8 Fair Market Rent (FMR) for ZIP 32566 - 2027

Investment Score for ZIP 32566

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	$1,620
1 Bedroom	$1,900
2 Bedrooms	$2,170
3 Bedrooms	$2,850
4 Bedrooms	$3,410
5 Bedrooms	$3,956
6 Bedrooms	$4,431
7 Bedrooms	$4,785
8 Bedrooms	$5,024

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	$1,900	$299,806	0.63%	D
2BR	$2,170	$446,909	0.49%	F
3BR	$2,850	$359,530	0.79%	D
4BR	$3,410	$473,860	0.72%	D
5BR	$3,956	$633,363	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32566 (Navarre, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32566 is set by HUD for 2026 as follows: - 0BR: $1540 - 1BR: $1740 - 2BR: $2040 - 3BR: $2710 - 4BR: $3290 These figures represent the maximum rent that a Section 8 voucher holder can pay for a unit in Navarre, FL. The FMR for a 2BR unit is $2040, which constitutes 23.2% of the median household income of $105,551. This indicates that the FMR is relatively affordable compared to local incomes. However, it is important to note that the actual rents in the area might be higher than these FMRs, especially given the high price-to-FMR ratio observed in the market data. According to Zillow, the median price for a 2BR home in this ZIP code is $439,520. The price-to-FMR ratio for a 2BR unit is 18.0x, meaning that the median home price is nearly 18 times the FMR. This suggests that the actual rental market may be significantly above the FMR levels, creating potential constraints for voucher holders who may struggle to find units within their budget. #### Affordability & Renter Profile In ZIP code 32566, the population is 43,883, with 17.5% of residents being renters. The occupancy rate stands at 88.6%, indicating a moderately tight rental market. Given the median household income of $105,551, the majority of residents are likely to be homeowners or have the financial means to afford higher rents. The 17.5% renter population includes those who rely on Section 8 vouchers. However, due to the high price-to-FMR ratio, it is challenging for voucher holders to find suitable housing. The median income level is quite high, suggesting that the typical resident has a strong financial background, but this also implies that the rental market is skewed towards higher-income individuals, making it difficult for lower-income tenants to compete. #### Investor Angle From an investor perspective, the ZIP code 32566 presents a mixed picture. The FMR for a 2BR unit is $2040, but the actual median rental price is much higher at $439,520. This means that if an investor were to purchase a property and rent it out at the FMR, they would likely face significant challenges in covering mortgage payments, maintenance costs, and other expenses associated with owning a rental property. Given the high price-to-FMR ratio, it is unlikely that the ZIP code will be cash-flow positive for investors focusing solely on Section 8 vouchers. The investment grade would be considered low due to the limited number of potential tenants who can afford the FMR rates and the high cost of entry into the market. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should consider purchasing properties that can be rented out at or below the FMR rates, particularly 0BR and 1BR units. These units are more likely to attract Section 8 voucher holders, as the FMRs are closer to what they can afford. For example, a 0BR unit at $1540 or a 1BR unit at $1740 would be more feasible for voucher holders. 2. **Consider Non-Section 8 Tenants**: Given the high median household income and the tight rental market, there is a significant opportunity to target non-Section 8 tenants who can afford higher rents. This could involve renovating older properties to increase their value and appeal to a broader range of renters. 3. **Evaluate Property Location**: Properties located in areas with higher concentrations of lower-income residents or near public transportation hubs may be more attractive to Section 8 voucher holders. Additionally, units in neighborhoods with lower median home prices might offer better opportunities for cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 32566 is to **skip** this market. The high price-to-FMR ratio and the limited number of potential tenants who can afford the FMR rates make it challenging to achieve positive cash flow. Instead, investors should look for markets where the actual rental prices are closer to the FMR, or consider diversifying their tenant base to include non-Section 8 renters who can afford higher rents.

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.