Location: Putnam County, FL | Metro: Gainesville, 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 | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $223,197 | 0.44% | F |
| 3BR | $1,260 | $341,056 | 0.37% | F |
| 4BR | $1,440 | $470,545 | 0.31% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 32666, located in Melrose, Florida, within the Putnam County metro area, reveals several key points regarding its viability for Section 8 real-estate investment.
Firstly, the rent math does not favor Section 8 participation. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1200, which significantly exceeds the current market rent of $542 as reported by the Census Bureau's American Community Survey (ACS). This disparity means that landlords would likely lose money if they were to solely rely on Section 8 rental subsidies.
Secondly, the acquisition cost of properties in this area is moderate, with a median home value of $311,457. However, the lack of data on days on market (DOM) and the low 0.2% price-cut share indicate that homes may not be moving quickly or selling at reduced prices. This suggests that while property prices are not exorbitant, the market conditions do not necessarily offer exceptional affordability for new acquisitions.
Lastly, tenant demand appears limited. With a total population of 6,662, only 12.0% of residents are renters. This relatively small percentage of potential tenants could make it challenging to find enough qualified Section 8 applicants to fill available units.
In conclusion, ZIP 32666 presents a scenario where the financial benefits of participating in the Section 8 program are questionable due to the high subsidy rates compared to actual market rents. Additionally, the property acquisition costs are neither particularly cheap nor expensive, but the limited tenant demand and slow-moving market suggest that this area may not be an optimal choice for landlords and small-portfolio investors seeking to capitalize on Section 8 opportunities. The mismatch between FMR and market rent, combined with the low number of potential renters, indicates that other ZIP codes might offer better prospects for Section 8 investments.
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.