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 | $1,250 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $215,675 | 0.77% | D |
| 3BR | $2,240 | $298,834 | 0.75% | D |
| 4BR | $2,540 | $367,570 | 0.69% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 32927, located in Cocoa, Florida, reveals a unique balance between yield and stability. With a Fair Market Rent (FMR) of $1,370 for the fiscal year 2024, it falls below the market rent of $2,126. This suggests that while there is potential for higher yields through market-rate rentals, landlords should be cautious about setting rents too high, as it could deter tenants.
The median home value in the area stands at $301,835, indicating that the housing market is moderately priced. The relatively low percentage of renters at 7.7% suggests that homeownership is more prevalent, which can affect demand for rental properties. However, the average days on market (DOM) for rental listings is 22 days, which is a reasonable duration and suggests that rental properties can find tenants without excessive delays.
The median household income in the area is $86,075, providing insight into the economic stability of potential tenants. Given these figures, ZIP 32927 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The lower FMR compared to the market rate and the moderate DOM indicate a stable rental market where consistent cash flow is likely, but high yields through aggressive pricing may not be sustainable.
To summarize, the key figures driving this classification include the FMR, market rent, median home value, percentage of renters, and median household income. Landlords and small-portfolio investors looking for stable returns should consider this area suitable for long-term investments, rather than short-term flips seeking quick profits.
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.