Location: Palm Bay-Melbourne-Titusville, FL | Metro: Palm Bay-Melbourne-Titusville, FL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
The analysis of the Section 8 cap-rate picture for ZIP code 32912 in Florida reveals several key points. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $1430 per month. This figure represents the government's estimate of what constitutes a fair rental price for Section 8 participants.
Unfortunately, the median home value and the market rent for ZIP 32912 are currently unavailable, making it challenging to provide a direct comparison between the FMR and market conditions. However, we can still derive some insights into the potential gross yield for properties rented under the Section 8 program.
In a typical scenario where the median home value and market rent are known, the gross yield would be calculated by dividing the annual rental income by the property's value. For ZIP 32912, if we were to use the FMR as a basis for annual rental income, a two-bedroom property would generate an annual income of $17,160 ($1430 x 12 months).
Without the median home value, we cannot calculate the exact gross yield. However, if the median home value were available and significantly higher than the annualized rental income, the gross yield would likely be lower, indicating that properties in this ZIP code might not be as attractive for investors seeking high returns based solely on rental income.
The lack of data on renter density and days on market (DOM) also complicates the analysis. Typically, higher renter density and shorter DOM periods suggest a more active rental market, which could indicate stronger demand for Section 8 properties. Conversely, lower density and longer DOM periods might suggest a less favorable environment for rental investments.
Given the incomplete data, it is difficult to definitively state which scenario is more realistic. However, if the median home value were substantially above the annualized rental income, the implied gross yield would be relatively low, suggesting that properties in ZIP 32912 might offer limited upside for investors focused primarily on rental income. In such a case, investors might need to consider other factors, such as property appreciation or government subsidies, when evaluating the overall investment potential.
Data Sources: FMR data from HUD (2027).
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.