Location: Palm Bay-Melbourne-Titusville, FL | Metro: Palm Bay-Melbourne-Titusville, 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 | $1,340 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $188,289 | 0.83% | C |
| 3BR | $2,090 | $267,149 | 0.78% | D |
| 4BR | $2,370 | $365,963 | 0.65% | D |
| 5BR | $2,749 | $531,589 | 0.52% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 32796 in Titusville, FL, are significant. First, consider the tenant turnover rate. The market rent for properties in this area is $1,710, whereas the Fair Market Rent (FMR) for FY 2024 is set at $1,280. This discrepancy suggests that tenants receiving Section 8 vouchers might struggle to afford higher rents, leading to frequent turnover. High turnover rates can be costly due to the time and expense involved in finding new tenants, conducting background checks, and preparing units for new occupants.
Vacancy exposure is another concern. With an average Days on Market (DOM) of 34 days, landlords face a period where their property may remain unoccupied. During this time, they do not receive rental income, which can impact cash flow. Moreover, the typical home value in ZIP 32796 is $270,765, while the median household income is $67,491. This gap indicates that many residents may require financial assistance to cover housing costs, increasing the likelihood of deferred maintenance issues. Landlords must be prepared to address these maintenance needs promptly to avoid further complications and ensure compliance with housing standards.
Despite these challenges, there are mitigating factors that make this ZIP code attractive for Section 8 investments. The renter share of the population is 15.2%, which is relatively high. High renter density typically translates into greater demand for rental properties, including those accepting Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of income for landlords who are willing to navigate the complexities of the program.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 32796.
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.