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 | $1,580 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,840 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,120 | $323,332 | 0.66% | D |
| 3BR | $2,840 | $490,802 | 0.58% | F |
| 4BR | $3,230 | $657,715 | 0.49% | F |
| 5BR | $3,747 | $1,173,319 | 0.32% | F |
U.S. Census Bureau data (2024)
The median income in Satellite Beach, FL (ZIP 32937) stands at $101,184, which provides some financial cushion for households. However, when it comes to affording the market rate rent of $2,808 per month (ZORI), the situation becomes more challenging. To put this into perspective, let’s consider how this compares to the federal voucher payment standard of $1730 per month (FMR for zip FY 2024).
A household earning the median income would spend approximately 33% of their monthly income on the market rate rent. This is a significant portion and might be considered unaffordable for many families. In contrast, if they were to receive a housing voucher, their rent burden would drop to around 20%, which is much more manageable and aligns better with affordability guidelines.
With only 17.5% of the population being renters and a total population of 27,836, the competition among landlords is relatively low compared to densely populated areas with higher rental rates. However, the affordability gap between the market rate ($2,808) and the voucher payment standard ($1730) means that landlords who accept vouchers will have a larger pool of potential tenants. This is particularly important given the limited number of renters in the area.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While cash-paying tenants might offer higher immediate returns, the substantial difference between market rents and voucher payments suggests that accepting vouchers could provide a steady stream of tenants without the risk of vacancies. Moreover, the lower rent burden on voucher recipients makes them more likely to be reliable tenants, reducing the likelihood of default or eviction. Landlords should weigh these factors carefully, considering both the financial benefits and the stability provided by voucher programs.
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.