Section 8 Fair Market Rent (FMR) for ZIP 32608 - 2027

Investment Score for ZIP 32608

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,330
1 Bedroom	$1,380
2 Bedrooms	$1,640
3 Bedrooms	$2,010
4 Bedrooms	$2,160
5 Bedrooms	$2,506
6 Bedrooms	$2,807
7 Bedrooms	$3,032
8 Bedrooms	$3,184

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,380	$121,981	1.13%	B
2BR	$1,640	$166,757	0.98%	C
3BR	$2,010	$355,447	0.57%	F
4BR	$2,160	$495,970	0.44%	F
5BR	$2,506	$835,448	0.3%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32608 (Gainesville, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32608 in Gainesville, FL, is set by HUD for 2026. The FMR for a two-bedroom unit is $1670, which represents 32.5% of the median household income of $61,588. However, the actual rental market price for a two-bedroom unit, according to Zillow, is significantly higher at $170,826. This indicates that the median home value for a two-bedroom property is approximately 8.5 times the FMR, suggesting that actual rents in the area are likely much higher than the FMR. Given these figures, voucher holders face significant constraints. The maximum rent they can pay under the voucher program is capped at the FMR, which means they would struggle to afford typical market rates. For instance, if a landlord charges the Zillow median rent of $170,826 annually, this translates to about $14,235 per month, far exceeding the $1670 monthly cap for a two-bedroom unit. This discrepancy highlights the challenge voucher holders have in finding affordable housing within their budget. #### Affordability & Renter Profile ZIP code 32608 has a high percentage of renters at 58.7%, indicating a strong demand for rental properties. With a population of 54,566 and an occupancy rate of 90.5%, the market appears to be relatively tight, suggesting that there is limited excess supply. The median household income of $61,588 is moderate, but the high renter percentage implies that many residents rely on rental housing due to affordability issues or other factors such as student populations. The high price-to-FMR ratio of 8.5x suggests that the rental market is not particularly affordable compared to the FMR standards. This tight market condition makes it difficult for low-income renters to find housing that fits within their budget, especially those relying on Section 8 vouchers. Given the high renter percentage and the relatively low median income, it is likely that many renters are cost-burdened, paying a disproportionate amount of their income towards housing costs. #### Investor Angle From an investor perspective, the ZIP code 32608 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1670, which is below the Zillow median home value of $170,826. However, the price-to-FMR ratio of 8.5x indicates that the actual rental market prices are much higher than the FMR. This means that landlords who participate in the Section 8 program will receive rents based on the FMR rather than the market rate, potentially impacting cash flow. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the average rental income against the average expenses. Assuming a typical two-bedroom unit rents for $1670 per month under the Section 8 program, an investor would need to ensure that their expenses, including mortgage payments, property taxes, insurance, maintenance, and management fees, do not exceed this amount. If the average monthly expense for a two-bedroom unit exceeds $1670, then the investment would not be cash-flow positive. Given the high price-to-FMR ratio, it is likely that many properties in this ZIP code are overpriced relative to the FMR. Therefore, the investment grade for properties in this ZIP code would depend heavily on the specific financials of each property. An investor would need to carefully evaluate each property’s cost structure to determine if it can generate positive cash flow at the FMR. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should focus on acquiring properties that can be rented out at or near the FMR. For example, a two-bedroom unit renting for $1670 per month would be more attractive than one renting for $14,235 per month. This strategy ensures that the investment aligns with the Section 8 program’s rental caps and maximizes the potential for positive cash flow. 2. **Evaluate Cost Structure Carefully**: Before purchasing any property, investors must thoroughly analyze the cost structure to ensure that the monthly expenses do not exceed the FMR. For instance, if the total monthly expenses for a two-bedroom unit are $1500, then renting it out for $1670 would result in a positive cash flow of $170 per month. Conversely, if the expenses exceed $1670, the investment would not be profitable. 3. **Consider Property Location and Amenities**: Given the high renter percentage and the tight market, investors should prioritize properties located in areas with strong demand and desirable amenities. Properties close to universities, employment centers, and public transportation are likely to attract more tenants and command higher rents, even if they are slightly above the FMR. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 32608 is to **Hold**. While the market is tight and there is a high demand for rental properties, the high price-to-FMR ratio poses significant challenges. Investors should carefully select properties that can be rented out at or near the FMR to ensure positive cash flow. Additionally, they should consider the location and amenities of the properties to maximize their appeal to potential tenants. Overall, the ZIP code offers opportunities but requires a strategic approach to navigate the constraints effectively.

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.