Section 8 Fair Market Rent (FMR) for ZIP 32725 - 2027

Investment Score for ZIP 32725

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	$1,410
1 Bedroom	$1,520
2 Bedrooms	$1,870
3 Bedrooms	$2,460
4 Bedrooms	$2,690
5 Bedrooms	$3,120
6 Bedrooms	$3,494
7 Bedrooms	$3,774
8 Bedrooms	$3,963

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,520	$159,337	0.95%	C
2BR	$1,870	$224,202	0.83%	C
3BR	$2,460	$301,192	0.82%	C
4BR	$2,690	$356,851	0.75%	D
5BR	$3,120	$427,847	0.73%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32725 (Deltona, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 32725 in Deltona, Florida, provide a benchmark for rental costs under the Section 8 housing program. For a two-bedroom unit, the FMR is set at $1860, which represents 30.5% of the median household income of $73,152. However, comparing this to actual rental prices reveals significant discrepancies. The Zillow median price for a two-bedroom home in this area is $222,086, which translates to a price-to-FMR ratio of approximately 10.0x. This means that actual market rents are likely much higher than the FMR, creating a constraint for voucher holders who can only afford rents up to the FMR level. Consequently, voucher holders may struggle to find suitable housing options within their budget, particularly for larger units where the gap between FMR and market rent is even wider. #### Affordability & Renter Profile The renter population in ZIP 32725 accounts for 21.3% of the total population, indicating a moderate presence of renters in the area. With a high occupancy rate of 96.1%, it suggests that the market is relatively tight, meaning there is little excess supply of rental properties. Given the median household income of $73,152, the affordability of rental units becomes a critical issue. The FMR for a two-bedroom unit is $1860, which is indeed affordable for many households based on the income levels. However, the actual market rents are significantly higher, making it challenging for lower-income families to secure housing without assistance. The tight market conditions coupled with high actual rents imply that competition among renters is fierce, especially for those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the key question is whether investing in rental properties in ZIP 32725 can be cash-flow positive at the FMR rates. To assess this, we need to consider the typical operating expenses and mortgage payments associated with rental properties. Assuming a property value of around $222,086 for a two-bedroom unit, and using a conservative estimate of 1% monthly property tax and 1% monthly maintenance and insurance costs, the total monthly expenses would be approximately $4441.72. At the FMR of $1860, the cash flow would be negative by about $2581.72 per month, which is not financially viable for most investors. Moreover, the investment grade in this ZIP code is likely to be low due to the high disparity between FMR and market rents. Investors seeking to maximize returns will find it difficult to achieve positive cash flow solely through Section 8 vouchers. Therefore, the primary focus should be on identifying properties that can command higher rents or finding ways to reduce operational costs significantly. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high disparity between FMR and market rents, investors should focus on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1510, which might be closer to the actual market rent for these types of units. This could help achieve better cash flow and potentially align with the needs of single individuals or couples who might not require larger units. 2. **Consider Location-Specific Strategies**: Deltona has a mix of residential areas, some of which may have lower actual rents compared to others. Investors should conduct thorough location-specific analyses to identify pockets where rents are closer to the FMR. This could involve targeting neighborhoods with less demand or areas with a higher concentration of lower-income residents who are more likely to use Section 8 vouchers. 3. **Explore Non-Section 8 Rental Opportunities**: Due to the financial constraints imposed by the FMR, investors might want to explore opportunities outside the Section 8 program. This could include offering short-term rentals or converting properties into multi-family units that can command higher rents. Alternatively, investors could seek out properties that are eligible for other forms of government assistance programs that offer higher reimbursement rates. #### Bottom Line Given the high disparity between FMR and actual market rents, along with the tight market conditions, the recommendation for Section 8-focused investors in ZIP 32725 is to **Skip**. The financial viability of rental properties at FMR rates is poor, and the limited supply of affordable units makes it challenging to find properties that can generate positive cash flow. Investors looking to enter this market should either focus on smaller units or explore alternative strategies that do not rely solely on Section 8 vouchers.

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.