Location: Levy County, FL | Metro: Levy County, 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 | $680 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,170 | $241,740 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 32621 reveals an interesting picture for potential landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $910 per month. When annualized, this translates into an annual rental income of $10,920. Given the median home value of $245,910, the implied gross yield for a property rented under the Section 8 program would be approximately 4.4%. This calculation is derived by dividing the annual rental income by the median home value.
In contrast, the market rent for a similar two-bedroom apartment, based on Census ACS data, stands at $812 per month. Annualizing this figure yields an annual rental income of $9,744. Using the same median home value of $245,910, the implied gross yield under market conditions would be about 3.97%. Thus, the Section 8 scenario offers a slightly higher gross yield compared to renting at market rates.
However, the decision on which scenario is more realistic hinges on several factors. With a renter density of only 16.5%, it suggests that a significant portion of the housing stock in ZIP 32621 is owner-occupied, which might limit the pool of potential tenants interested in Section 8 properties. Additionally, the lack of data on days on market (DOM) for this ZIP code makes it difficult to gauge how quickly a Section 8 property could be leased relative to non-Section 8 properties. This uncertainty adds risk to the Section 8 investment scenario.
Despite the higher gross yield offered by the Section 8 program, the lower renter density in ZIP 32621 implies that finding eligible tenants willing to participate in the program could be challenging. Therefore, while the Section 8 option provides a better return on investment based purely on the gross yield, the practical considerations of tenant availability and lease-up time suggest that renting at market rates may be more feasible in this specific ZIP code. Investors should weigh these factors carefully when making decisions on property investments in ZIP 32621.
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.