Section 8 Fair Market Rent (FMR) for ZIP 32955 - 2027

Investment Score for ZIP 32955

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,470
1 Bedroom	$1,690
2 Bedrooms	$1,970
3 Bedrooms	$2,640
4 Bedrooms	$3,000
5 Bedrooms	$3,480
6 Bedrooms	$3,898
7 Bedrooms	$4,210
8 Bedrooms	$4,421

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,970	$206,066	0.96%	C
3BR	$2,640	$345,992	0.76%	D
4BR	$3,000	$477,528	0.63%	D
5BR	$3,480	$674,974	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32955 (Rockledge, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32955, Rockledge, FL, is set by HUD for 2026 as follows: - 0BR: $1420 - 1BR: $1660 - 2BR: $1920 - 3BR: $2620 - 4BR: $2970 To understand how these figures compare to actual rents, we need to consider the price-to-FMR ratio. The Zillow median price for a 2BR home in this ZIP code is $208,562, which translates to a price-to-FMR ratio of 9.1x. This suggests that the median rent for a 2BR unit is likely around $1920, aligning closely with the FMR. However, it also indicates that the cost of purchasing a property is significantly higher relative to the rental income it can generate. For voucher holders, this means they must find units that do not exceed the FMR limits, which can be challenging given the high purchase prices and the potential for landlords to charge more than the FMR due to limited supply. #### Affordability & Renter Profile In ZIP code 32955, the median household income is $86,457. The FMR for a 2BR unit represents approximately 26.6% of this median income, indicating that the rent is relatively affordable for the average resident. However, only 22.9% of the population are renters, suggesting that the rental market is relatively small compared to the overall housing market. With an occupancy rate of 86.4%, the market is moderately occupied but not overly saturated, implying a competitive environment for both tenants and landlords. Given the relatively low percentage of renters and the moderate occupancy rate, it is likely that the rental market is somewhat tight. This tightness could lead to upward pressure on rents, making it difficult for voucher holders to find units that meet their budgetary constraints. Additionally, the high price-to-FMR ratio suggests that there might be fewer affordable rental options available, further complicating the situation for those relying on vouchers. #### Investor Angle From an investor's perspective, the key question is whether the ZIP code can provide positive cash flow at the FMR levels. Given the FMR for a 2BR unit is $1920, we can use this figure to assess potential profitability. Assuming a typical mortgage payment for a 2BR property purchased at the median price of $208,562, with a 20% down payment and a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly mortgage payment would be approximately $960. Adding in estimated property taxes (around 1.5% of the property value annually), insurance costs (approximately $100 per month), and maintenance (around 1% of the property value annually), the total monthly expenses would be roughly $1200. This leaves a potential net operating income (NOI) of $720 per month ($1920 - $1200). While this is a positive cash flow, it is important to note that the NOI is relatively modest, especially considering the high purchase price and the risk associated with relying solely on Section 8 vouchers. The investment grade in this ZIP code would be considered moderate, given the balance between positive cash flow and the risks involved in the rental market dynamics. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR or 1BR properties. These units have lower FMRs ($1420 and $1660 respectively) and may offer better cash flow opportunities. For example, a 1BR unit with a monthly rent of $1660 would have a NOI of about $460 if the same expense assumptions apply. 2. **Consider Multi-Family Properties**: Single-family homes might be too expensive for positive cash flow at the FMR levels. Multi-family properties, particularly those with multiple smaller units, could provide a more balanced approach. By spreading out the expenses across several units, the overall NOI could be improved. 3. **Engage with Local Landlords**: Building relationships with local landlords who are familiar with the Section 8 program can help secure listings and ensure compliance with HUD regulations. This can mitigate some of the risks associated with the program and potentially increase the number of available units. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 32955 is to **Hold**. While there are opportunities for positive cash flow, particularly with smaller units, the high purchase prices and limited rental market make it a challenging environment. Investors should carefully evaluate the risks and consider diversifying their portfolio to include other ZIP codes with more favorable conditions. In summary, the tight rental market and high price-to-FMR ratio suggest that while Rockledge offers some potential, it is not an ideal location for investors focusing exclusively on Section 8 vouchers.

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.