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 | $1,660 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,910 |
| 4 Bedrooms | $3,170 |
| 5 Bedrooms | $3,677 |
| 6 Bedrooms | $4,118 |
| 7 Bedrooms | $4,447 |
| 8 Bedrooms | $4,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,210 | $449,304 | 0.49% | F |
| 3BR | $2,910 | $411,562 | 0.71% | D |
| 4BR | $3,170 | $432,382 | 0.73% | D |
| 5BR | $3,677 | $439,415 | 0.84% | C |
U.S. Census Bureau data (2024)
The potential risks for Section 8 investments in ZIP code 32124, located in Daytona Beach, FL, include significant tenant turnover due to the disparity between the market rent of $2,935 and the Fair Market Rent (FMR) of $2,120 for fiscal year 2024. This gap suggests that tenants may struggle to afford higher rents outside of the Section 8 program, leading to frequent moves and increased vacancy rates.
Vacancy exposure is another concern, given the average days on market (DOM) for rental properties stands at 59 days. This relatively long period indicates that landlords might face extended periods without rental income while waiting for new tenants, especially if they rely solely on Section 8 vouchers.
Deferred maintenance exposure is also notable, considering the typical home value in the area is $429,566, while the median household income is only $92,616. This financial strain on residents can result in a lack of funds for timely repairs and maintenance, potentially increasing the burden on landlords to keep properties up to code and habitable.
However, these risks must be weighed against the 5.8% share of renters in the area, which is relatively high. A larger renter population typically correlates with higher demand for housing assistance programs such as Section 8, thus providing a steady stream of potential tenants. The concentration of renters can mitigate some of the risks associated with finding and retaining qualified tenants.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high density of renters in ZIP 32124 makes it a moderate risk for a first-time Section 8 landlord. The presence of a large tenant pool offers a balance to the inherent risks, ensuring a reasonable likelihood of consistent occupancy and income.
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.