Location: Deltona-Daytona Beach-Ormond Beach, FL | Metro: Deltona-Daytona Beach-Ormond Beach, FL HUD Metro FMR Area
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 | $1,280 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $119,680 | 1.15% | B |
| 2BR | $1,700 | $187,768 | 0.91% | C |
| 3BR | $2,240 | $282,914 | 0.79% | D |
| 4BR | $2,440 | $364,350 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 32119 (South Daytona, FL) provides a clear picture of potential investment yields. The Fair Market Rent (FMR) for a 2-bedroom unit in fiscal year 2024 is set at $1410 annually, while the market rent, as indicated by ZORI, stands at $1,414 per month. To derive the cap rate, we need to compare these rental figures to the median home value of $243,401.
First, let's calculate the annualized gross yield based on the FMR. With an annual rent of $1410, the gross yield is approximately 0.58%. This is calculated as follows:
Next, using the market rent figure of $1,414 per month, the annual rent would be $17,008, leading to a gross yield of about 7.0%. This calculation is shown below:
The significant difference between these two gross yields highlights the importance of understanding the dynamics of the local rental market. Given that only 36.6% of residents are renters, and the Days on Market (DOM) is 48 days, it suggests a moderately competitive environment for rental properties.
In this context, the gross yield based on the market rent of 7.0% is more reflective of the actual investment scenario. While the FMR yield of 0.58% is useful for setting expectations under government-subsidized programs, the higher market rent yield indicates better potential returns for landlords and small-portfolio investors willing to operate outside the Section 8 program.
The 48-day DOM also supports the idea that properties may move relatively quickly once listed, which can help reduce holding costs and improve cash flow. However, the lower renter density means that landlords must carefully consider their target audience and the availability of Section 8 vouchers in the area.
To conclude, the cap rate derived from the market rent is significantly more attractive at 7.0%, compared to the much lower 0.58% from the FMR. This suggests that landlords should focus on securing tenants who can pay closer to market rates to maximize their investment returns.
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.