Location: Pensacola-Ferry Pass-Brent, FL | Metro: Pensacola-Ferry Pass-Brent, FL MSA
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 | $1,020 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $341,789 | 0.52% | F |
| 4BR | $2,150 | $469,200 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 32577 highlights a significant gap between the Fair Market Rent (FMR) set at $1220 for fiscal year 2024 and the actual market rent of $1282, based on Census ACS data. This discrepancy amounts to a difference of $62, or approximately 5%, indicating that landlords could potentially face a shortfall if they only receive FMR payments.
In this context, where only 17.4% of residents are renters and the median home value stands at $373,578, the implications of accepting Section 8 tenants become more nuanced. With a median income of $73,998, the area suggests a higher economic profile, which could mean that landlords might be inclined to seek higher rents reflective of the local market conditions.
The cost of housing voucher tenants below open-market rates is evident when considering the $62 gap. Landlords must weigh whether the administrative ease and guaranteed payment from the government offset the lower rental income compared to what they could charge in the open market. Additionally, the stability provided by government-backed vouchers can be a significant advantage, as it reduces the risk of non-payment and tenant turnover.
However, the decision to accept Section 8 tenants should also consider the broader economic landscape. The relatively low percentage of renters and high median home values suggest that the demand for rental properties may not be as high as in more densely populated areas. Therefore, landlords in ZIP 32577 who are willing to participate in the Section 8 program should be prepared for the possibility of reduced rental income, which may impact their overall portfolio yields.
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.