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 | $1,290 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,630 |
| 5 Bedrooms | $3,051 |
| 6 Bedrooms | $3,417 |
| 7 Bedrooms | $3,690 |
| 8 Bedrooms | $3,875 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $228,885 | 0.76% | D |
| 3BR | $2,320 | $392,206 | 0.59% | F |
| 4BR | $2,630 | $583,463 | 0.45% | F |
| 5BR | $3,051 | $998,431 | 0.31% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) set at $1380 for ZIP code 32952 in Merritt Island, FL, landlords can expect to align their rental pricing with the federal guidelines designed to ensure affordability for low-income families. The local market rent, as indicated by ZORI, stands at $2,141, which is significantly higher, suggesting that there is a premium for those who can afford to pay above the FMR. Given the median home value of $432,975, it's evident that the area has a mix of homeowners and renters, with 16.0% of residents being renters. This percentage indicates a substantial but not overwhelming presence of rental units in the market.
The median income of $102,726 in Merritt Island provides insight into the economic status of the area's residents. However, it's important to note that the FMR is tailored to assist those below this median income level, ensuring they have access to affordable housing options. The days on market (DOM) figure of 57 days suggests that properties are typically listed for less than two months before they find a buyer, indicating a relatively quick turnover rate in the real estate market. This could be beneficial for landlords looking to sell their properties or for investors considering property flips.
The price-cut share of 0.3% highlights that very few sellers in Merritt Island are forced to lower their asking prices, reflecting a strong and stable market. For landlords and small- portfolio investors, this stability is crucial when deciding whether to enter or remain in the rental market. It also implies that rental properties are likely to maintain their value over time, reducing the risk of depreciation.
In conclusion, Merritt Island offers a balanced environment for real estate investment, with a clear distinction between the federally supported FMR and the market-driven ZORI. The relatively low renter share and high median income indicate that while the demand for affordable housing exists, it does not dominate the market. Therefore, the verdict for Section 8 participation in ZIP 32952 is positive, as long as landlords are prepared to navigate the regulations and requirements associated with the program, knowing that they will receive a steady $1380 per month for eligible units, which is well below the market rent of $2,141.
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.