Location: Gainesville, FL | Metro: Gainesville, 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 | $1,520 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,870 | $188,046 | 0.99% | C |
| 3BR | $2,300 | $320,193 | 0.72% | D |
| 4BR | $2,460 | $426,911 | 0.58% | F |
| 5BR | $2,854 | $715,547 | 0.4% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 32606, which includes Gainesville, FL, and parts of Alachua County, are straightforward when you break them down. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1720. This figure is crucial because it determines the maximum amount a landlord can receive from the government through a Section 8 voucher program.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), are very close to the SAFMR at $1718. This parity between the SAFMR and the local market rent suggests that landlords who participate in the Section 8 program will not face significant discrepancies between their potential rental income and the actual market rates.
A Section 8 voucher pays a portion of the rent based on the SAFMR, but the total reimbursement to the landlord also includes the tenant's contribution and any utility allowances. Typically, the tenant is responsible for paying approximately 30% of their adjusted monthly income towards rent. For instance, if a tenant's adjusted monthly income is $1,500, they would pay about $450 toward rent. The remaining balance up to the SAFMR of $1720 would be covered by the government, assuming the rent does not exceed this limit.
In addition to the base rent, there are utility allowances. These vary but are generally around $200-$300 per month. Therefore, if we assume a utility allowance of $250, the total reimbursement to the landlord would be the sum of the tenant’s contribution ($450) and the government subsidy ($1720 - $450 = $1270), plus the utility allowance ($250).
This brings the total reimbursement to $1720, aligning perfectly with the SAFMR. In practice, this means that landlords in ZIP 32606 can expect to receive the full SAFMR of $1720 per month for a two-bedroom apartment when all components—tenant payment, government subsidy, and utility allowance—are factored in.
Given that the local market rent is nearly identical to the SAFMR, landlords participating in the Section 8 program for a two-bedroom unit in ZIP 32606 will experience neither a significant surplus nor a shortfall compared to market rates. However, landlords should be aware of administrative costs associated with the program, such as paperwork and inspections, which could slightly affect their overall financial position.
In summary, the typical reimbursement gap or surplus for a two-bedroom unit in ZIP 32606 is minimal due to the alignment between the SAFMR and the local market rent. Landlords can expect to receive $1720 per month, covering both rent and utilities, without needing to subsidize the difference themselves or earning substantially more than the market average.
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.