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 | $1,170 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $174,824 | 0.9% | C |
| 3BR | $2,100 | $320,541 | 0.66% | D |
| 4BR | $2,390 | $420,307 | 0.57% | F |
| 5BR | $2,772 | $499,105 | 0.56% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 32926, located in Cocoa, Florida, reveals a market that balances between high yield and moderate stability, making it an attractive option for both flip-style and steady-cashflow investments.
On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 stands at $1,280. This figure is notably lower than the market rent of $1,894, suggesting a potential opportunity for higher-than-average rental yields. Additionally, the median home value in the area is $328,816, which, when combined with the lower FMR, indicates a favorable environment for rental properties compared to the cost of property acquisition.
Moving to the stability axis, Cocoa's ZIP 32926 shows a mix of positive and cautionary signals. The area has a relatively low percentage of renters at 20.3%, which might imply a less stable tenant base. However, the days on market (DOM) average is 35 days, indicating that properties are typically occupied quickly once they become available. Furthermore, the median household income is $70,735, providing some assurance regarding the financial stability of potential tenants.
Given these factors, Cocoa, FL (ZIP 32926) leans towards a high-yield investment with moderate stability. The gap between the FMR and market rent suggests opportunities for maximizing returns through strategic property management and pricing. However, the lower percentage of renters and median income levels indicate the need for careful tenant selection to ensure timely rent payments and minimize vacancy periods.
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.