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 | $1,160 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $190,869 | 0.82% | C |
| 3BR | $2,090 | $385,156 | 0.54% | F |
| 4BR | $2,370 | $573,526 | 0.41% | F |
| 5BR | $2,749 | $744,116 | 0.37% | F |
U.S. Census Bureau data (2024)
Merritt Island, FL, with a population of 24,759, is a suburban area where approximately 26.1% of residents are renters. The median income in this ZIP code is $87,262, indicating a relatively affluent community. The median home value stands at $423,317, which reflects the overall economic status and property desirability in the region.
The rent economics in ZIP 32953 present an interesting opportunity for investors. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $1,360. This figure represents the maximum amount that a Section 8 tenant can pay towards their housing costs. In contrast, the market rent, as measured by Zillow's ZORI index, is $1,781. This means that landlords participating in the Section 8 program would have to accept a lower rent compared to the market rate, but still receive a guaranteed income stream backed by the government.
Given these numbers, ZIP 32953 is more suitable for a hands-off voucher operator rather than a hands-on value-add buyer. The difference between the FMR and the market rent suggests that landlords will not be able to achieve premium rents through active property management. Instead, they should focus on the stability and predictability that comes with the Section 8 program, ensuring a steady income regardless of market fluctuations. This approach is ideal for those who prefer passive investment strategies and are willing to trade higher potential returns for lower risk and less involvement in tenant screening and rent collection processes.
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.