Section 8 Fair Market Rent (FMR) for ZIP 32073 - 2027

Investment Score for ZIP 32073

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	$1,360
1 Bedroom	$1,380
2 Bedrooms	$1,650
3 Bedrooms	$2,020
4 Bedrooms	$2,530
5 Bedrooms	$2,935
6 Bedrooms	$3,287
7 Bedrooms	$3,550
8 Bedrooms	$3,728

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	$1,650	$183,191	0.9%	C
3BR	$2,020	$277,882	0.73%	D
4BR	$2,530	$359,993	0.7%	D
5BR	$2,935	$469,192	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32073 (Orange Park, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32073 is set by HUD for 2026, with the following figures: - 0BR: $1340 - 1BR: $1370 - 2BR: $1640 (which represents 25.7% of the median household income) - 3BR: $2020 - 4BR: $2530 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent in each unit size category. However, the actual rental market in Orange Park, FL, may differ significantly from these figures. For instance, the Zillow median price for a 2BR home is $172,000, which suggests a relatively affordable housing market. Yet, the price-to-FMR ratio of 8.7x indicates that the median home price is nearly nine times higher than the FMR for a 2BR unit. This implies that the rental market is likely to be competitive and that landlords might be inclined to charge higher rents than the FMR to maximize their returns. Given that the FMR for a 2BR unit is $1640, but the median home price suggests a rental market that could be much higher, voucher holders face significant constraints. They may struggle to find suitable housing options that do not exceed their voucher limits, particularly if landlords are charging above the FMR. #### Affordability & Renter Profile The population of Orange Park, FL, is 43,561, with 37.1% being renters. This means there are approximately 16,185 renters in the area. The occupancy rate stands at 95.4%, indicating a robust demand for housing units. Given the median household income of $76,455, the FMR for a 2BR unit ($1640) is indeed affordable, representing only 25.7% of the median income. This suggests that the local economy supports a reasonable level of affordability for renters, especially those who are not reliant on Section 8 vouchers. However, the high occupancy rate and the fact that 37.1% of the population are renters indicate that the market is tight. There is likely a strong competition among renters for available units, which could drive up rental prices. Additionally, the high price-to-FMR ratio suggests that the rental market is more expensive than what the FMR indicates, making it challenging for low-income renters to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 32073 presents both opportunities and challenges. The FMR for a 2BR unit is $1640, which is lower than the potential rental rates in a tight market. However, the price-to-FMR ratio of 8.7x suggests that the median home price is quite high relative to the FMR, which could impact cash flow positively if rental rates are higher than the FMR. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical rental rates and the costs associated with owning and managing rental properties. If the actual rental rates are consistently above the FMR, then investors who are willing to accept Section 8 vouchers could still achieve positive cash flow. However, they would need to ensure that their rental rates do not exceed the FMR, as this would disqualify them from participating in the Section 8 program. The investment grade for this ZIP code would depend on various factors such as the stability of the local economy, the demand for rental units, and the overall cost of ownership. Given the high occupancy rate and the significant number of renters, there is a strong demand for rental units, which could make this ZIP code attractive for investors. However, the high price-to-FMR ratio suggests that the initial investment cost is relatively high, which could affect the overall return on investment. #### Specific Actionable Insights 1. **Focus on 2BR Units**: Given that the FMR for a 2BR unit is $1640, which is 25.7% of the median household income, this unit size is most likely to be affordable for a large portion of the local population. Investors should consider acquiring 2BR units to maximize their chances of attracting tenants who can use Section 8 vouchers. 2. **Negotiate Rental Rates Below Actual Market Rates**: While the actual rental rates in Orange Park, FL, may be higher than the FMR, investors should negotiate with landlords to keep rental rates below the FMR to remain eligible for the Section 8 program. This could involve offering to manage the property or providing other incentives to landlords. 3. **Monitor Local Economic Indicators**: The local economy plays a crucial role in determining the long-term viability of rental investments. Investors should monitor indicators such as job growth, unemployment rates, and median household income to assess the stability of the market. A stable local economy could support higher rental rates and provide a more consistent stream of income. #### Bottom Line For Section 8-focused investors, the ZIP code 32073 (Orange Park, FL) presents a mixed picture. While there is a strong demand for rental units and a significant portion of the population are renters, the high price-to-FMR ratio suggests that the initial investment cost is relatively high. Additionally, the tight market conditions mean that rental rates could be higher than the FMR, which could limit the pool of eligible tenants. Based on the data provided, the recommendation for Section 8-focused investors is to **Hold**. The ZIP code offers a stable rental market with a high occupancy rate, but the high price-to-FMR ratio and the potential for rental rates exceeding the FMR suggest that investors should proceed cautiously. Acquiring 2BR units and negotiating rental rates below the actual market rates could help maintain eligibility for the Section 8 program while achieving positive cash flow.

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.