Location: Taylor County, FL | Metro: Dixie County, FL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The potential pitfalls for Section 8 investments in ZIP code 32359 are significant and must be carefully considered. First, tenant turnover is a major concern. At the market rent of $1,290, tenants might be more inclined to seek higher subsidies, leading to frequent moves once they secure a voucher. The Fair Market Rent (FMR) for the area is set at $1,100, which is lower than the market rate, indicating that landlords may face challenges in attracting and retaining tenants who qualify for Section 8 vouchers.
Vacancy exposure is another critical issue. The Days on Market (DOM) for properties in this ZIP code is not available, which suggests a lack of data on how quickly rental units are filled. This uncertainty can lead to prolonged vacancies, especially if the competition among landlords is high or if there is an oversupply of rental units. Landlords should be prepared for periods where their property may sit empty, reducing their overall income.
The deferred-maintenance exposure is substantial, considering the typical home value in the area is $266,064. With a median income of $51,125, many residents may struggle to keep up with maintenance costs, which can translate into increased wear and tear on rental properties. This could result in higher repair and maintenance expenses for landlords, impacting profitability and requiring additional financial planning.
Despite these risks, the high concentration of renters in ZIP 32359 presents a favorable opportunity. The 8.9% renter share indicates a dense population of individuals who may rely on housing assistance programs such as Section 8. High renter density typically correlates with greater demand for rental properties, including those that accept Section 8 vouchers. Therefore, while there are notable risks, the potential for steady tenant demand remains strong.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.