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 | $1,560 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,090 | $326,715 | 0.64% | D |
| 3BR | $2,800 | $577,099 | 0.49% | F |
| 4BR | $3,180 | $763,434 | 0.42% | F |
| 5BR | $3,689 | $1,084,325 | 0.34% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 32903 in Indialantic, FL, are significant. First, tenant turnover can be a substantial issue, with the market rent at $2,507 compared to the Fair Market Rent (FMR) for FY 2024 at $1,770. This discrepancy indicates that tenants may struggle to afford higher rents outside of the Section 8 program, leading to frequent turnover and associated costs.
Vacancy exposure is another critical concern, given that the average days on market (DOM) for rentals in this area is 40 days. This extended period can result in lost rental income and increased marketing expenses, especially if the property remains vacant for an extended time.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $558,904 and a median income of $104,906, homeowners in this area may find it challenging to keep up with maintenance and repair costs, particularly when renting out their properties. This could lead to higher-than-expected maintenance costs for landlords, which can eat into profits and require significant upfront investments.
However, these risks must be weighed against the high density of renters in the area, with a 15.2% renter share. A high proportion of renters often translates into a greater demand for housing vouchers, potentially stabilizing occupancy rates and reducing vacancy periods.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.