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 | $1,070 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,230 | $156,782 | 0.78% | D |
| 2BR | $1,430 | $292,494 | 0.49% | F |
| 3BR | $1,910 | $444,443 | 0.43% | F |
| 4BR | $2,180 | $496,053 | 0.44% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Cape Canaveral, FL (ZIP 32920), presents a nuanced scenario for both landlords and small-portfolio investors. With a median home value of $315,009, the market signals a relatively stable housing environment. The fact that only 0.3% of listings have reduced their prices indicates a strong seller's market, where homeowners are confident in the value of their properties. This stability, coupled with a 62-day median days on market (DOM), suggests that homes are selling quickly, which supports the idea that there is significant demand for property in the area.
From an investment perspective, the rent-side dynamics offer a compelling opportunity. The Fair Market Rent (FMR) for ZIP 32920 in fiscal year 2024 is set at $1,150, whereas the actual market rent, measured by ZORI (Zillow Observed Rent Index), stands at $1,809. This gap between subsidized rental rates and market rents provides a buffer for landlords who can leverage the higher market rates to improve their cash flow. It also points to a potential mismatch between affordable housing needs and the current rental market, which could be addressed by investors looking to cater to different segments of the market.
For long-term investors, the setup in Cape Canaveral implies a cautious approach to appreciation expectations. While the current market conditions support maintaining property values, the limited reduction in listing prices and quick sales suggest that any significant increase in home values might be constrained. The local economy, driven by aerospace and tourism sectors, plays a critical role in sustaining demand, but it also introduces volatility. Long-term investors should focus on steady cash flows from rentals rather than rapid capital appreciation.
In summary, Cape Canaveral offers a balanced market with strong pricing power and a favorable rental environment. However, investors should be prepared for moderate growth in property values and focus on the rental income potential to build a sustainable investment strategy.
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.