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 | $980 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $126,005 | 1.04% | B |
| 3BR | $1,750 | $208,767 | 0.84% | C |
| 4BR | $1,990 | $290,668 | 0.68% | D |
U.S. Census Bureau data (2024)
Cocoa, Florida's ZIP code 32922 is a moderately sized residential area with a population of 14,700 residents. The neighborhood is characterized by a significant rental market, with 47.8% of its residents being renters. This indicates a substantial demand for rental properties in the area. The median household income in this ZIP code is $44,469, which places it squarely in the middle-income range. The median home value in ZIP 32922 is $199,939, suggesting that homeownership is relatively affordable compared to other areas in Florida.
Moving into the economic landscape of renting in Cocoa, the Fair Market Rent (FMR) for ZIP 32922 for fiscal year 2024 is set at $1,110. In contrast, the actual market rent, measured by the Zillow Observed Rental Index (ZORI), stands at $1,394. This discrepancy between the FMR and the ZORI highlights a potential opportunity for landlords who can attract tenants through the Section 8 housing choice voucher program, despite the higher market rents. The difference suggests that landlords might be able to secure tenants with vouchers while still achieving competitive rental rates.
The question then becomes whether ZIP 32922 suits a hands-off voucher operator or requires a hands-on approach for value-add improvements. Given the population demographics and the rental market dynamics, a hands-off strategy could be viable if the property meets the basic requirements and is located in a desirable part of the neighborhood. However, due to the income levels and the disparity between FMR and market rent, a hands-on value-add approach might yield better returns. Landlords who invest in property upgrades, maintenance, and tenant relations could potentially command higher rents and improve occupancy rates, even in a voucher-heavy market.
In conclusion, ZIP 32922 offers a balanced environment for both hands-off and hands-on Section 8 investors. The significant rental market share and the gap between FMR and market rent indicate that there is room for strategic investment and management. For those looking to leverage the voucher program while maintaining market competitiveness, Cocoa presents a promising opportunity.
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.