Section 8 Fair Market Rent (FMR) for ZIP 32724 - 2027

Investment Score for ZIP 32724

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	$1,140
1 Bedroom	$1,250
2 Bedrooms	$1,530
3 Bedrooms	$2,020
4 Bedrooms	$2,190
5 Bedrooms	$2,540
6 Bedrooms	$2,845
7 Bedrooms	$3,073
8 Bedrooms	$3,227

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	$1,250	$168,549	0.74%	D
2BR	$1,530	$227,956	0.67%	D
3BR	$2,020	$324,504	0.62%	D
4BR	$2,190	$408,473	0.54%	F
5BR	$2,540	$486,121	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32724 (DeLand, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32724 is set by HUD for 2026 and varies based on the number of bedrooms. For a two-bedroom unit, the FMR is $1560, which represents 25.4% of the median household income of $73,592. This suggests that voucher holders have a significant constraint when it comes to finding affordable housing. The FMRs are as follows: - 0BR: $1110 - 1BR: $1270 - 2BR: $1560 - 3BR: $2060 - 4BR: $2230 These figures represent the maximum amount that a voucher holder can pay for rent. However, actual rental prices often exceed these limits, particularly for units with more bedrooms. For example, the Zillow median price for a two-bedroom unit is $230,814, which is significantly higher than the FMR. The price-to-FMR ratio for a two-bedroom unit is 12.3x, indicating that the actual market prices are much higher than what HUD deems fair. #### Affordability & Renter Profile ZIP code 32724 has a population of 45,140, with 22.2% of residents being renters. The occupancy rate stands at 91.8%, suggesting a relatively tight rental market. Given the median household income of $73,592, it is clear that a substantial portion of the population would struggle to afford market-rate rentals, especially those exceeding the FMR. The high price-to-FMR ratio of 12.3x indicates that the market is not particularly affordable for low-income renters who rely on Section 8 vouchers. With only 22.2% of the population renting, there is a limited pool of potential tenants, making it challenging for landlords to fill units if they are priced above the FMR. #### Investor Angle From an investor perspective, the ZIP code 32724 offers a mixed outlook. The FMRs provide a benchmark for pricing units to attract Section 8 voucher holders. However, the actual market prices are considerably higher, which could impact cash flow positively if investors manage to secure higher rents. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing rental properties. These include mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of 70% of the Zillow median price as a purchase price ($161,569.80), and a 30-year fixed mortgage rate of 4.5%, the monthly mortgage payment would be approximately $800. Adding other typical costs such as property taxes (1.5% of purchase price), insurance ($100/month), and maintenance ($100/month), the total monthly expenses would be around $1,200 for a two-bedroom unit. Given that the FMR for a two-bedroom unit is $1560, the net cash flow would be approximately $360 per month, assuming the property is rented at the FMR. This suggests that while the investment might not generate high returns, it could still be cash-flow positive. The investment grade for this ZIP code would likely be moderate due to the tight rental market and the relatively high proportion of the median income dedicated to rent. Investors should carefully consider their risk tolerance and the potential for rental price increases before committing to this market. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should aim to acquire properties where the rental rates are below the FMR to maximize the chances of attracting Section 8 voucher holders. For instance, a two-bedroom unit priced at $1500 would be more attractive to voucher holders compared to one priced at $1600. 2. **Consider Property Tax Rates**: Given that property taxes account for a significant portion of the monthly expenses, investors should look into properties with lower tax assessments or consider negotiating with local authorities to reduce tax burdens. This can help improve the overall profitability of the investment. 3. **Utilize Vacant Properties**: With an occupancy rate of 91.8%, there is a small but notable opportunity to capitalize on vacant properties. By acquiring and renovating these units, investors can potentially command higher rents, although they must remain competitive with the FMR to attract voucher holders. #### Bottom Line For Section 8-focused investors, ZIP code 32724 presents a moderately attractive market. While the actual rental prices are high, the FMRs provide a clear guideline for pricing units to ensure they are accessible to low-income renters. The investment is likely to be cash-flow positive but with modest returns. Therefore, the recommendation is to **Hold** this ZIP code for now, but keep a close eye on any changes in the rental market dynamics or policy adjustments that could affect affordability and demand for subsidized housing. This analysis is grounded in the provided data and highlights the key factors that Section 8 investors should consider when evaluating ZIP code 32724.

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.