Location: Walton County, 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 | $184,752 | 0.87% | C |
| 3BR | $2,210 | $266,925 | 0.83% | C |
| 4BR | $2,690 | $354,128 | 0.76% | D |
U.S. Census Bureau data (2024)
Skeptical investors considering the ZIP code 32567 in Florida might have several concerns regarding the feasibility of investing in properties there. One common objection is whether the Fair Market Rent (FMR) of $1,190 for the fiscal year 2024 will be sufficient to cover the mortgage on a home priced at $301,859. This concern is valid, but let's break it down.
The FMR is the maximum amount that a tenant can pay in rent without spending more than 30% of their income. For a home valued at $301,859, assuming a typical mortgage rate of around 4%, the monthly payment would be approximately $1,400 to $1,500. With an FMR of $1,190, the rental income alone would not cover the mortgage payment. However, this does not account for potential appreciation in property values or additional income streams such as property tax refunds under certain programs.
Another question raised is whether the 12.8% of the population being renters is indicative of enough demand to sustain rental properties. While this percentage might seem low, it is important to note that the rental market in ZIP 32567 is supported by a variety of factors including seasonal tourism and retirees looking for short-term housing. The rental demand is also influenced by the availability of homes for sale versus rentals. In this case, the rental demand is likely to remain steady due to these external factors.
Lastly, investors might wonder if the Housing Choice Voucher program will keep pace with the market rents, which currently stand at $442. The voucher program aims to provide assistance up to the FMR level, but there can be delays in adjusting voucher amounts to match the rising costs. In ZIP 32567, the gap between the current voucher amount and the market rent suggests that landlords may need to be selective about accepting vouchers, especially if they want to maximize their income. However, the voucher program remains a crucial source of stable tenants for many landlords.
In summary, while the FMR of $1,190 may not fully cover the mortgage on a $301,859 home, other factors such as property appreciation and additional income sources should be considered. The 12.8% renter population indicates a moderate demand, which can be bolstered by transient and retiree populations. Lastly, the voucher program may lag behind market rents, but it continues to offer a reliable stream of tenants.
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.