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 | $1,260 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,370 | $167,422 | 0.82% | C |
| 2BR | $1,680 | $283,720 | 0.59% | F |
| 3BR | $2,210 | $368,184 | 0.6% | D |
| 4BR | $2,410 | $531,773 | 0.45% | F |
| 5BR | $2,796 | $932,247 | 0.3% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 32127 (Port Orange, FL) reveals an interesting investment scenario when comparing the Federal Market Rent (FMR) and the market rent rates. For a two-bedroom unit, the FMR is set at $1470 per month for FY 2024, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,590 per month.
Using these figures, we can calculate the gross yields for both scenarios. The annualized FMR for a two-bedroom unit would be $17,640 ($1470 x 12 months), leading to an implied gross yield of approximately 5.02%. This is derived from the median home value of $351,787. In contrast, the annualized market rent of $18,960 ($1,590 x 12 months) results in a slightly higher implied gross yield of around 5.39%.
Given the 18.4% renter density in Port Orange, it's important to note that the market conditions suggest a leaner rental market compared to other areas. Additionally, the average days on market (DOM) for rentals stands at 66 days, indicating a moderate speed in finding tenants. These factors imply that landlords might face some challenges in fully realizing the market rent rate consistently across all units.
In light of these considerations, the FMR rate of $1470 per month appears more realistic for long-term investment planning. While the market rent rate of $1,590 offers a marginally better gross yield, the difficulty in securing tenants at this price point could lead to periods where the property does not generate income at the expected level. Therefore, the FMR scenario provides a safer estimate for potential cash flow, despite offering a lower gross yield of 5.02%.
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.