Location: Orlando-Kissimmee-Sanford, FL | Metro: Orlando-Kissimmee-Sanford, FL MSA
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 | $1,920 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $3,330 |
| 5 Bedrooms | $3,863 |
| 6 Bedrooms | $4,327 |
| 7 Bedrooms | $4,673 |
| 8 Bedrooms | $4,907 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,280 | $356,613 | 0.64% | D |
| 3BR | $2,850 | $518,332 | 0.55% | F |
| 4BR | $3,330 | $771,802 | 0.43% | F |
| 5BR | $3,863 | $1,046,410 | 0.37% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate for ZIP 32732 (Geneva, FL) provides insights into the potential returns for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a two-bedroom unit set at $2180 annually for fiscal year 2024, and considering the median home value of $578,889, we can derive the implied gross yield.
To calculate the gross yield using the FMR, we take the annual rent of $2180 and divide it by the median home value of $578,889. This results in an implied gross yield of approximately 0.38%. While this figure is useful for understanding the baseline rental income, it's important to recognize that the actual market rent is listed as N/A, indicating a lack of readily available data to compare against the FMR scenario.
The low gross yield of 0.38% based on the FMR suggests that relying solely on Section 8 payments might not be financially attractive for most investors. The 4.0% renter density in the area indicates that only a small portion of the population is likely to be eligible for Section 8 assistance, which could limit the pool of potential tenants. Additionally, the absence of data regarding the days on market (DOM) makes it challenging to assess how quickly properties might be rented out under the Section 8 program.
In contrast, if market rents were known and higher than the FMR, the gross yield would naturally be better. However, without specific market rent figures, it's impossible to provide a direct comparison. Given the circumstances, it's more realistic to consider the FMR-based gross yield as a conservative estimate, acknowledging that actual returns could vary significantly depending on the local rental market dynamics and the availability of non-Section 8 tenants willing to pay higher rates.
For landlords and small-portfolio investors looking to enter the Geneva, FL market, it's crucial to balance the lower gross yield associated with Section 8 against other factors such as tenant stability and government subsidies. While the FMR-based yield of 0.38% is not particularly high, the long-term benefits of stable tenancy and the predictability of government-assisted rent payments may outweigh the initial financial considerations.
Ultimately, the decision to participate in the Section 8 program should be made after a thorough evaluation of individual property costs, including maintenance and management expenses, alongside an assessment of the local rental market conditions and the potential for attracting tenants outside of the Section 8 program.
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.