Section 8 Fair Market Rent (FMR) for ZIP 32174 - 2027

Investment Score for ZIP 32174

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	$1,170
1 Bedroom	$1,290
2 Bedrooms	$1,630
3 Bedrooms	$2,230
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: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,290	$145,477	0.89%	C
2BR	$1,630	$247,860	0.66%	D
3BR	$2,230	$368,236	0.61%	D
4BR	$2,520	$507,672	0.5%	F
5BR	$2,923	$673,508	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32174 (Ormond Beach, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32174, as per the 2026 data, is set at $1610 for a two-bedroom unit. This represents 27.2% of the median household income of $71,011, indicating that the rent is relatively affordable compared to the local income levels. However, it is important to note that the actual rental market in Ormond Beach is significantly higher. The Zillow median price for a two-bedroom home is $242,954, which translates into a price-to-FMR ratio of 12.6x. This suggests that the actual rental costs could be much higher than the FMR, creating a significant constraint for voucher holders who can only pay up to the FMR rate. For instance, if a landlord charges $1610 for a two-bedroom unit, a Section 8 voucher holder would be able to cover this amount. But if the actual market rent exceeds this figure, such as $2000 or more, voucher holders would struggle to find suitable housing within their budget. This disparity between FMR and actual market rents highlights the challenge faced by low-income renters in securing affordable housing. #### Affordability & Renter Profile ZIP code 32174 has a population of 54,783, with 17.6% of residents being renters. The occupancy rate stands at 90.8%, suggesting a fairly tight rental market where most available units are occupied. Given the median household income of $71,011, the FMR for a two-bedroom unit at $1610 represents a reasonable portion of the average income. However, the high price-to-FMR ratio indicates that the market is not particularly affordable for those relying solely on Section 8 vouchers. The renter profile in Ormond Beach likely includes individuals and families who are either working at lower wage jobs or receiving assistance through government programs like Section 8. The 17.6% renter population suggests that while there is a substantial number of renters, they do not dominate the market. This implies that landlords have some flexibility in setting rents above the FMR, especially for units that are in better condition or located in more desirable areas. #### Investor Angle From an investor’s perspective, the ZIP code 32174 offers mixed prospects. The FMR rates provide a baseline for what tenants can afford with a Section 8 voucher. For a two-bedroom unit, the FMR is $1610. To determine if this is cash-flow positive, we need to consider the typical expenses associated with owning and renting out a property. Assuming a conservative estimate, let’s break down the potential cash flow: - Property value: $242,954 (based on Zillow median) - Monthly mortgage payment: Approximately $1000 (assuming a 30-year fixed-rate mortgage at 4.5% interest) - Property taxes: Around $150-$200 per month (based on typical tax rates) - Insurance: Approximately $100-$150 per month - Maintenance and other expenses: Around $100-$150 per month Total monthly expenses would range from $1350 to $1500. At the FMR of $1610, the net cash flow would be between $60 and $260 per month, depending on the exact cost breakdown. While this is positive, it is not a substantial profit margin, especially considering the high price-to-FMR ratio. In terms of investment grade, the market appears to be moderately attractive but with significant risks. The tight rental market suggests demand, but the high cost of entry and limited profit margins make it a challenging investment. Additionally, the reliance on government vouchers means that any changes in funding or regulations could impact the stability of the investment. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should aim to acquire properties where the actual rental cost is below the FMR. For example, a two-bedroom unit priced at $1500 would still attract Section 8 tenants while providing a slightly better cash flow scenario. This strategy helps mitigate the risk of not finding tenants willing to pay the FMR rate. 2. **Consider Multi-Family Properties**: Single-family homes might be less attractive due to the high price-to-FMR ratio. Multi-family properties, such as duplexes or small apartment complexes, could offer a better return on investment. These properties often have lower acquisition costs relative to the number of units and can spread expenses across multiple tenants. 3. **Look for Undervalued Properties**: Given the high price-to-FMR ratio, investors should seek out undervalued properties that can be rented out at or slightly below the FMR. This could involve older units that require some renovation or are located in less desirable areas. Such investments could yield a more favorable cash flow position. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 32174 is to **Hold**. While there is a strong demand for rental properties, the high price-to-FMR ratio and limited profit margins make it a challenging market. Investors should carefully evaluate the potential cash flow and consider focusing on units that are priced below the FMR or exploring multi-family properties to improve their financial outlook. Overall, the market is not ideal for new investments but could be maintained for existing ones with strategic management.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.