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 | $1,240 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,520 | $158,755 | 0.96% | C |
| 3BR | $1,870 | $305,896 | 0.61% | D |
| 4BR | $2,000 | $457,618 | 0.44% | F |
| 5BR | $2,320 | $748,901 | 0.31% | F |
U.S. Census Bureau data (2024)
The ZIP code 32607, located in Gainesville, FL, can serve as an effective cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the favorable spread between the Fair Market Rent (FMR) set at $1360 for the fiscal year 2024 and the current market rent of $1,553. This gap indicates that landlords can potentially receive higher rents through Section 8 contracts compared to market rates, ensuring steady and reliable cash flow.
The median home value in 32607 is $286,992, which aligns well with the FMR, suggesting that property values are stable and within reach for low-income renters. This stability reduces the risk of significant price fluctuations affecting the portfolio's performance. Furthermore, the 0.2% price-cut share and 45-day days on market (DOM) indicate a relatively efficient market where properties sell quickly without substantial discounts, which is beneficial for maintaining positive cash flow.
The ZIP code 32607 also has a 66.0% renter share, meaning that a majority of residents are renters, providing a strong demand for rental properties. However, the median income of $45,987 suggests that many tenants will rely on government assistance such as Section 8 vouchers to afford housing. This further supports the idea of using 32607 as a cash-flow anchor, as the consistent demand for rental units combined with the higher-than-market FMR payments ensures a predictable and stable income stream for landlords.
To summarize, 32607 is best suited as a cash-flow anchor due to the positive spread between FMR and market rent, along with stable property values and a high renter share. Landlords and small-portfolio investors can leverage this to ensure a solid financial foundation for their investments.
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.