Location: Ocala, FL | Metro: Ocala, FL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 32182 reveals some critical insights into potential investment opportunities for landlords and small-portfolio investors.
In ZIP 32182, the Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $1270 per month. This translates to an annualized income of $15,240. However, the median home value and market rent figures are not available for this ZIP code, which complicates a direct comparison between the Section 8 rental rate and the market rental rate.
To derive the implied gross yield for a property rented under the Section 8 program, we must consider the annualized income of $15,240. Given that the median home value is not provided, let's assume a hypothetical median home value of $250,000 for illustrative purposes. The implied gross yield for a property rented under Section 8 would be approximately 6.1%, calculated as $15,240 divided by $250,000. This figure represents the annual rental income relative to the property's value.
In contrast, without the market rent figure, it's impossible to calculate an exact gross yield for renting a property at market rates. However, if the market rent were higher than the Section 8 rate, the gross yield would naturally be greater than 6.1%. For example, if the market rent for a 2BR was $1500 per month ($18,000 annually), the gross yield would be 7.2% assuming the same median home value of $250,000.
The 0.0% renter density in ZIP 32182 suggests that very few residents are utilizing the Section 8 housing voucher program. This low participation rate implies that the demand for Section 8 properties is minimal, making it less likely that investors would achieve a steady stream of rental income at the FMR level.
The Days on Market (DOM) figure being not available (N/A) indicates a lack of recent sales data, which could affect the reliability of the median home value estimate used for calculating the gross yield. Therefore, the implied gross yield of 6.1% based on the Section 8 FMR should be treated with caution.
Given the low renter density and the absence of market rent data, renting at market rates is likely to be more realistic for achieving a higher gross yield. However, the actual performance would depend on the specific property and the local real estate market conditions.
Implied Gross Yields:
The gross yield comparison clearly shows that renting at market rates offers a better return on investment compared to the Section 8 program. Investors should carefully consider these factors when evaluating properties in ZIP 32182.
Data Sources: FMR data from HUD (2027). 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.