Section 8 Fair Market Rent (FMR) for ZIP 32162 - 2027

Investment Score for ZIP 32162

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	$1,450
1 Bedroom	$1,510
2 Bedrooms	$1,750
3 Bedrooms	$2,180
4 Bedrooms	$2,520
5 Bedrooms	$2,923
6 Bedrooms	$3,274
7 Bedrooms	$3,536
8 Bedrooms	$3,713

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
1BR	$1,510	$209,596	0.72%	D
2BR	$1,750	$282,672	0.62%	D
3BR	$2,180	$392,402	0.56%	F
4BR	$2,520	$943,592	0.27%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32162 (The Villages, FL) #### Section 8 Voucher Dynamics In ZIP code 32162, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1930 per month. This amount represents 31.2% of the median household income of $74,119, which indicates that it is within the affordability range for many residents. However, the actual rental market in The Villages is significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom home is $287,498, translating to a monthly rent of approximately $1240 based on typical mortgage calculations. This results in a price-to-FMR ratio of 12.4x, meaning that the actual market rent is much higher than the FMR. This disparity creates significant constraints for voucher holders. They can only afford units priced at or below the FMR, which is far lower than the prevailing market rates. As such, voucher holders face limited options and may struggle to find suitable housing within their budget. Landlords who accept Section 8 vouchers must be willing to rent their properties at a rate that is substantially below the market average, which could impact their willingness to participate in the program. #### Affordability & Renter Profile The Villages has a relatively low renter population of 7.1%, indicating that it is primarily a homeownership community. With a median household income of $74,119, most residents likely own their homes rather than renting. The occupancy rate stands at 83.0%, suggesting that there is some vacancy but not an oversupply of housing units. Given the high price-to-FMR ratio, the rental market appears to be quite tight, with few units available at the FMR levels. The renters in this area are likely to be individuals or families who have chosen to live in The Villages due to its desirable lifestyle and amenities. However, they may also include retirees or those who cannot afford to purchase a home in this expensive market. The high cost of living and the limited number of affordable rental units make it challenging for low-income renters to find suitable accommodation. #### Investor Angle From an investor perspective, the ZIP code 32162 offers mixed opportunities. The FMR for a two-bedroom unit is $1930, which is significantly lower than the market rent. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical costs associated with owning and managing rental properties. These costs include mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of 1% of the property value for annual maintenance and management costs, and a property tax rate of 1.2%, the total cost of owning a two-bedroom property valued at $287,498 would be: - Annual Property Tax: $287,498 * 1.2% = $3,449.98 - Monthly Property Tax: $3,449.98 / 12 = $287.49 - Annual Maintenance and Management: $287,498 * 1% = $2,874.98 - Monthly Maintenance and Management: $2,874.98 / 12 = $239.58 - Total Monthly Costs: $287.49 + $239.58 = $527.07 If the investor were to rent out the property at the FMR of $1930, the net monthly income would be: - Net Monthly Income: $1930 - $527.07 = $1402.93 Given that the FMR is well below the market rent, investors who rely solely on FMR would likely experience negative cash flow unless they can reduce their costs significantly. Therefore, the investment grade for this ZIP code would be considered low for Section 8-focused investors. #### Specific Actionable Insights 1. **Target Lower-Income Units**: Investors should focus on acquiring properties that are already priced below the market rate, ideally close to the FMR. This will increase the likelihood of finding tenants who can utilize Section 8 vouchers. For example, a two-bedroom unit priced at $1930 would be more attractive to voucher holders compared to one priced at $287,498. 2. **Consider Multi-Family Properties**: Single-family homes in The Villages tend to be expensive, making it difficult to achieve positive cash flow at FMR. Multi-family properties might offer better opportunities since they can spread fixed costs over multiple units, potentially leading to a more favorable financial outcome. 3. **Engage with Local Real Estate Agents**: Given the tight rental market, working with local real estate agents who understand the nuances of the area can help identify potential properties that are more affordable and suitable for Section 8 tenants. Agents can provide insights into neighborhoods where rental rates are closer to the FMR. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 32162 is to **skip** this market. The high market rents relative to the FMR make it challenging to find properties that can generate positive cash flow while still being affordable for voucher holders. Additionally, the low percentage of renters suggests that the demand for rental units is limited, further reducing the attractiveness of this ZIP code for rental investments. However, if investors are willing to take on the challenge of finding and managing properties at or near the FMR, they might consider targeting specific lower-cost neighborhoods or multi-family properties. Nonetheless, the overall environment is not conducive to profitable Section 8 investments given the current data.

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.