Location: Putnam County, 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 | $1,040 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $165,036 | 0.82% | C |
| 3BR | $1,690 | $265,221 | 0.64% | D |
| 4BR | $1,780 | $353,395 | 0.5% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 32640, located in Hawthorne, FL, are significant. First, tenant turnover poses a notable challenge. At a market rent of $978, which is below the Fair Market Rent (FMR) of $1140 for fiscal year 2024, landlords may face difficulties retaining tenants who can afford higher rents. This can lead to frequent vacancies and increased administrative costs associated with finding new tenants.
Vacancy exposure is another concern. The Days on Market (DOM) figure for the area is not available, making it difficult to predict how long properties might remain vacant between tenancies. This uncertainty can impact cash flow and overall profitability.
Deferred maintenance is also a risk factor. With a typical home value of $233,353 and a median income of $60,208, residents may struggle to maintain their homes properly due to financial constraints. Landlords will need to be prepared to invest in regular upkeep and repairs to ensure properties meet Section 8 standards and remain habitable.
However, these risks must be weighed against the high concentration of renters in the area. The 14.3% renter share indicates a strong demand for rental properties, which typically translates into higher demand for Section 8 vouchers. This can provide a steady stream of qualified tenants, reducing the likelihood of extended vacancies and ensuring a consistent revenue source.
In conclusion, the investment in Section 8 housing in ZIP code 32640 presents a moderate risk for a first-time landlord. While there are challenges related to tenant turnover and maintenance, the high renter density offers a buffer that can mitigate some of these risks.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.