Section 8 Fair Market Rent (FMR) for ZIP 32901 - 2027

Location: Palm Bay-Melbourne-Titusville, FL | Metro: Palm Bay-Melbourne-Titusville, FL MSA

Investment Score for ZIP 32901

Monthly Rent (2BR)

$1,770

Median Price (2BR)

$185,100

1% Rule

0.96%

Annual Yield

11.47%

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	$1,320
1 Bedroom	$1,520
2 Bedrooms	$1,770
3 Bedrooms	$2,370
4 Bedrooms	$2,690
5 Bedrooms	$3,120
6 Bedrooms	$3,494
7 Bedrooms	$3,774
8 Bedrooms	$3,963

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,770	$185,100	0.96%	C
3BR	$2,370	$284,472	0.83%	C
4BR	$2,690	$347,434	0.77%	D
5BR	$3,120	$395,932	0.79%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

28,923

Median Household Income

$54,651

Housing Units

13,365

Renter Percentage

50.6%

Occupancy Rate

86.4%

Renter Occupied

5,839

The ZIP code 32901, located in Melbourne, Florida, offers a unique blend of suburban charm and urban convenience. Nestled along the Space Coast, this area is known for its vibrant community life, excellent schools, and proximity to beaches and parks. The real estate market here reflects a mix of homeowners and renters, making it an attractive investment opportunity for those looking to enter the housing market.

Fair Market Rent (FMR): For the fiscal year 2024, the FMR for a two-bedroom apartment in ZIP 32901 is set at $1,390, indicating the government's benchmark for affordable rental rates.
Market Rent: According to Zillow's ZORI index, the average market rent for a similar property is $1,670, showing that the actual rental market exceeds the FMR by nearly $280 per month.
Median Home Value: The median home value in this ZIP code stands at $269,561, which is relatively low compared to other parts of Florida, offering potential for both rental and resale investments.
Renter Share: With 50.6% of the population being renters, there is a strong demand for rental properties, suggesting a balanced market where both buying and renting can be viable options.
Days on Market (DOM): Properties typically spend 42 days on the market before they are sold, which is a moderate duration indicating a steady pace of sales without excessive delays.
Median Income: The median household income in ZIP 32901 is $54,651, providing insight into the economic profile of the residents and their ability to afford higher rents or home values.

The analysis reveals a balanced real estate market in Melbourne, Florida, with strong rental demand and a median home value that remains accessible for many investors. Given the gap between FMR and actual market rent, there is a clear opportunity for landlords to capitalize on higher rental yields while still remaining competitive. The moderate DOM suggests a healthy pace of transactions, and the median income figure supports the potential for steady cash flow from rental properties. For small-portfolio investors, Melbourne presents a solid investment environment with room for growth in both rental and resale markets.

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.