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 | $1,480 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,650 |
| 4 Bedrooms | $3,020 |
| 5 Bedrooms | $3,503 |
| 6 Bedrooms | $3,923 |
| 7 Bedrooms | $4,237 |
| 8 Bedrooms | $4,449 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $404,913 | 0.49% | F |
| 3BR | $2,650 | $523,536 | 0.51% | F |
| 4BR | $3,020 | $546,973 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 32949, located in Grant-Valkaria, FL, might have several concerns regarding the viability of investing in rental properties here. Let's address these concerns head-on using the available data.
Objection 1: Will FMR $1540 (zip FY 2024) cover the mortgage on a $511,314 home?
The Fair Market Rent (FMR) for ZIP 32949 in fiscal year 2024 is set at $1540. This figure represents the average monthly rent that a household pays for a standard-quality rental unit. However, it does not directly correlate with the mortgage payment on a $511,314 home. The mortgage payment depends on factors such as the interest rate, loan term, and down payment amount. To illustrate, if we assume a 30-year fixed-rate mortgage at an interest rate of 5%, and a 20% down payment, the monthly principal and interest payment would be approximately $2326. This is higher than the FMR, indicating that the FMR alone would not cover the mortgage payments on a home of that value. Investors must consider additional sources of income or lower-cost investment options to ensure profitability.
Objection 2: Is there enough renter demand at 3.7%?
The percentage of renter-occupied housing units in ZIP 32949 is 3.7%. This figure suggests that the majority of residents own their homes rather than renting them. For an investor, this could imply a smaller pool of potential tenants. However, the actual number of renters can still be significant depending on the total population size. To provide a clearer picture, the data does not specify the total number of households or the exact number of renters in ZIP 32949. Therefore, while the 3.7% indicates a relatively low proportion of renters, it does not definitively indicate whether there is sufficient demand for rental properties. Additional research on local population trends and migration patterns would be necessary to fully assess the rental market's health.
Objection 3: Will vouchers keep pace with N/A market rents?
The availability of housing vouchers in ZIP 32949 is not specified in the provided data. However, it is crucial to note that voucher programs are designed to help low-income families afford housing. The U.S. Department of Housing and Urban Development (HUD) adjusts voucher amounts annually based on changes in the local market conditions. If the market rents in ZIP 32949 increase significantly, HUD will likely adjust the voucher amounts accordingly. Yet, the extent to which these adjustments align with the actual market rents remains unclear without specific data. Investors should monitor local housing market trends and voucher policies closely to anticipate any discrepancies between voucher amounts and market rents.
In conclusion, while ZIP 32949 presents some challenges for investors, particularly in terms of renter demand and mortgage coverage, it also offers opportunities for those willing to delve deeper into the local market dynamics. The lack of detailed data on certain aspects, such as the total number of renters and specific housing voucher information, necessitates further investigation before making a final decision.
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.