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 | $1,480 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $192,903 | 0.83% | C |
| 2BR | $1,970 | $276,215 | 0.71% | D |
| 3BR | $2,600 | $398,326 | 0.65% | D |
| 4BR | $2,830 | $474,479 | 0.6% | F |
| 5BR | $3,283 | $632,645 | 0.52% | F |
U.S. Census Bureau data (2024)
New Smyrna Beach, FL, represented by ZIP code 32168, presents an interesting investment opportunity for landlords and small-portfolio investors. However, skepticism is warranted when considering several key factors that can influence the profitability and sustainability of such investments.
Objection 1: Will the Fair Market Rent (FMR) of $1,530 for ZIP 32168 in fiscal year 2024 cover the mortgage on a $378,291 home?
The FMR of $1,530 does not directly cover the mortgage on a home priced at $378,291. To determine if the FMR is sufficient, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly principal and interest payment would be approximately $1,850. This means that the FMR falls short by about $320 per month. Investors should consider additional income streams or lower interest rates to make the numbers work.
Objection 2: Is there enough renter demand at 23.3%?
The 23.3% rental rate in New Smyrna Beach suggests a moderate level of demand. While it is not as high as some metropolitan areas, it still indicates a significant portion of the housing market dedicated to rentals. The demand for rental properties is influenced by various factors including job availability, population growth, and local economic conditions. For instance, the area's tourism industry can contribute to seasonal rental demand. However, the data alone does not provide a comprehensive picture of the long-term stability of this demand. Investors should conduct further research into local trends and economic forecasts.
Objection 3: Will vouchers keep pace with market rents of $2,186?
The Housing Choice Voucher program aims to assist low-income families, the elderly, and the disabled with affordable housing. In ZIP 32168, the market rent of $2,186 is notably higher than the FMR. Given that voucher payments are typically based on the FMR, which is $1,530, there is a significant gap between the voucher amount and the market rent. This could pose challenges for landlords who rely solely on voucher recipients. However, landlords have the option to charge a tenant a portion of the difference, up to 40% of their income, which can help bridge the gap. It is crucial for investors to understand the terms of the voucher program and the potential for supplementary income from tenants.
In conclusion, while New Smyrna Beach offers opportunities for rental investments, careful consideration of the financial implications and local market dynamics is essential. The data shows a clear gap between FMR and market rents, which must be addressed through strategic planning and possibly diversifying the tenant base beyond just voucher recipients.
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.