Section 8 Fair Market Rent (FMR) for ZIP 32571 - 2027

Investment Score for ZIP 32571

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	$1,130
1 Bedroom	$1,330
2 Bedrooms	$1,510
3 Bedrooms	$1,980
4 Bedrooms	$2,380
5 Bedrooms	$2,761
6 Bedrooms	$3,092
7 Bedrooms	$3,339
8 Bedrooms	$3,506

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
2BR	$1,510	$185,248	0.82%	C
3BR	$1,980	$289,379	0.68%	D
4BR	$2,380	$374,145	0.64%	D
5BR	$2,761	$520,759	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32571 (Pace, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32571 is set by HUD for 2026 as follows: - 0BR: $1100 - 1BR: $1230 - 2BR: $1450 (which is 19.9% of the median household income) - 3BR: $1940 - 4BR: $2380 These figures represent the maximum rent that a Section 8 voucher holder can pay for a unit of a given size. However, it is important to note that these are just guidelines, and actual rents can vary significantly. In reality, landlords often set rents higher than the FMR to maximize their returns, which can create a significant constraint for voucher holders. For example, a 2BR unit has an FMR of $1450, but if the landlord sets the rent at $1600, the voucher holder would have to pay the difference out-of-pocket, which could be challenging given the limited income they have available for housing. #### Affordability & Renter Profile ZIP code 32571 has a population of 42,171, with 16.1% of residents being renters. The occupancy rate is high at 94.7%, indicating a strong demand for rental properties. Given the median household income of $87,617, the affordability of rental units becomes a critical issue. A 2BR unit at the FMR of $1450 represents only 19.9% of the median income, which is relatively affordable compared to other areas. However, the Zillow median price for a 2BR home is $182,780, suggesting that homeownership is more expensive relative to rental costs. The price-to-FMR ratio for a 2BR unit is 10.5x, meaning that the median home value is about 10.5 times the median monthly rent. This high ratio indicates that owning a home is significantly more expensive than renting, which could make renting more attractive to lower-income households. However, the tight rental market means that many renters might face challenges finding units within their budget, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 32571 offers a potentially lucrative opportunity due to the high occupancy rates and strong demand for rental properties. However, the viability of investing in this area specifically for Section 8 tenants depends on several factors. Firstly, the cash flow potential must be considered. If a landlord adheres strictly to the FMR, they would receive $1450 for a 2BR unit. Given the median home value of $182,780, the typical mortgage payment for a 2BR home would be around $700-$800 per month, assuming a 30-year fixed-rate mortgage at a 4.5% interest rate. This leaves a margin of approximately $650-$750 per month for other expenses such as property taxes, insurance, maintenance, and profit. Secondly, the investment grade of properties in this ZIP code should be evaluated. With a median household income of $87,617 and a high occupancy rate, there is a strong likelihood that the demand for rental properties will remain robust. However, the challenge lies in ensuring that the rents are set at levels that do not exceed the FMR too much, thereby limiting the number of potential tenants who can afford the units. #### Specific Actionable Insights 1. **Rent Pricing Strategy**: Landlords should consider setting rents slightly below the FMR to attract more Section 8 voucher holders. For instance, pricing a 2BR unit at $1400 instead of $1450 could increase the pool of eligible tenants, leading to faster lease-ups and reduced vacancy periods. 2. **Property Maintenance and Upkeep**: Given the high occupancy rate, maintaining properties in good condition is crucial. Investors should allocate a portion of their budget to regular maintenance and repairs to ensure that units remain desirable and competitive in the market. This could involve setting aside around 1% of the property value annually for maintenance, which would be approximately $1827 for a $182,780 home. 3. **Diversification of Tenant Base**: While focusing on Section 8 tenants can be profitable, diversifying the tenant base to include non-voucher holders can mitigate risks associated with voucher program changes or delays. Offering a mix of units at different price points can help stabilize cash flows and reduce dependency on a single type of tenant. #### Bottom Line For Section 8-focused investors, ZIP code 32571 presents a mixed picture. On one hand, the strong demand for rental properties and high occupancy rates suggest a favorable environment. On the other hand, the tight rental market and the need to adhere to FMR guidelines present challenges. Given the data, the recommendation is to **Hold**. Investors should maintain their current positions in this ZIP code while carefully monitoring the local rental market dynamics. They should also consider implementing the actionable insights mentioned above to optimize their investments and ensure long-term sustainability. However, new investors looking to enter the market should proceed with caution. While there is potential for positive cash flow, the high price-to-FMR ratio and the limited percentage of income dedicated to housing by voucher holders mean that there is a risk of overpricing units and reducing the pool of eligible tenants.

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.