Location: Jacksonville, FL | Metro: Jacksonville, FL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,370 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
The analysis of the Section 8 cap-rate scenario for ZIP code 32238 in Florida reveals some limitations due to the lack of complete data. However, we can still provide insights based on the available information.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 32238 for fiscal year 2024 is set at an annualized rate of $1580. This figure represents the maximum amount that a landlord could receive through the Section 8 program for a two-bedroom unit. To derive the implied gross yield, we need to consider the median home value and the rental market conditions. Unfortunately, the median home value and market rent figures are not available for ZIP 32238, making it impossible to calculate the precise gross yield for a typical market rental scenario.
In the absence of market rent data, we cannot compare the gross yields directly. However, we can infer that if the median home value were significantly higher than the annualized FMR, the implied gross yield from the Section 8 program would be lower compared to what could potentially be achieved through market rents. The lack of specific data on renter density and days on market (DOM) further complicates the assessment of which scenario is more realistic.
Given the incomplete data, landlords and small-portfolio investors should proceed with caution when considering participation in the Section 8 program for ZIP 32238. The decision should be based on the specific terms offered by the housing authority, the condition of the property, and the potential for securing long-term tenants through the program. While the Section 8 program provides a guaranteed income source, the gross yield may be less attractive than market rates if they were higher. Therefore, investors should evaluate the trade-offs between the stability provided by the Section 8 program and the potentially higher returns from market rentals.
Data Sources: FMR data from HUD (2027).
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.