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 | $1,390 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $202,447 | 0.79% | D |
| 2BR | $1,870 | $337,272 | 0.55% | F |
| 3BR | $2,500 | $630,981 | 0.4% | F |
| 4BR | $2,850 | $946,990 | 0.3% | F |
| 5BR | $3,306 | $1,495,031 | 0.22% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Cocoa Beach, FL (ZIP 32931), suggests a balanced market with implications for both pricing power and rental dynamics. The median home value stands at $458,006, indicating a middle-tier market where homeownership remains accessible but competitive. Despite this, only 0.3% of listings have seen reductions, signaling that sellers are holding firm on their asking prices. This resilience is further supported by the median days on market (DOM) figure of 57 days, which points towards a relatively quick turnover rate, suggesting demand meets supply without significant delays.
On the rental side, the forward market rent (FMR) for ZIP 32931 is projected at $1,600 for fiscal year 2024, significantly lower than the current Zillow Observed Rent Index (ZORI) of $2,700. This gap between the FMR and ZORI indicates an overpriced rental market relative to what might be expected in the future. As such, landlords and small-portfolio investors should prepare for potential downward pressure on rents as the market adjusts to more realistic levels.
The combination of stable home values, minimal price reductions, and a swift sales cycle suggests that landlords and investors can maintain a degree of pricing power in the near term. However, the long-term outlook for appreciation is tempered by the overpriced rental market. If rental rates begin to fall towards the FMR, it could affect the overall desirability of the area, potentially impacting home values.
For those considering long-hold investments, the setup implies a cautious approach. While the current market conditions support steady returns through rentals, the potential for rental rates to decline means that appreciation might not be as robust as in other markets. Investors should focus on properties that offer intrinsic value beyond just the rental income, such as those in desirable locations or with strong potential for renovations that could add value.
In summary, the data points to a market where short-term pricing power is intact, but long-term appreciation may be limited due to the overpriced rental sector. Landlords and small-portfolio investors should balance their expectations accordingly, leveraging current market conditions while preparing for possible changes in the rental environment.
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.