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 | $1,160 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,360 | $137,721 | 0.99% | C |
| 2BR | $1,550 | $170,931 | 0.91% | C |
| 3BR | $2,040 | $270,574 | 0.75% | D |
| 4BR | $2,440 | $358,613 | 0.68% | D |
| 5BR | $2,830 | $402,220 | 0.7% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 32583, located in Milton, Florida, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. For fiscal year 2024, the FMR is set at $1260, while the actual market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1864. This represents a difference of $604 per month, or approximately 32.4%, which is crucial for landlords and small-portfolio investors to understand.
In Milton, where only 12.9% of residents are renters, the median home value is $288,004 and the median income is $85,440. Given these figures, the disparity between FMR and market rent can be seen as a challenge for property owners. When FMR is lower than the market rent, it means that landlords who accept Section 8 vouchers will have to rent their properties at rates below what the open market would command. This could result in a financial shortfall, as the difference of $604 per unit per month must be absorbed by the landlord unless they receive additional subsidies or incentives.
To put this into perspective, consider the typical monthly expenses associated with maintaining rental properties, such as mortgage payments, property taxes, insurance, utilities, and maintenance costs. In an area with a high median home value and relatively low rental population, landlords might find it more profitable to sell their properties or rent them to non-voucher tenants willing to pay the market rate of $1864. However, for those who choose to participate in the Section 8 program, the reduced rental income could impact their overall investment yield.
The decision to rent to Section 8 tenants should be carefully weighed against the potential benefits, such as stable, government-backed rental income and the possibility of receiving additional assistance for repairs and maintenance through the program. Despite the initial financial gap, the long-term stability and support offered by the Section 8 program might still make it an attractive option for some landlords in Milton, especially those looking to serve a community need or diversify their tenant base.
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.