Section 8 Fair Market Rent (FMR) for ZIP 32738 - 2027

Investment Score for ZIP 32738

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	$1,440
1 Bedroom	$1,560
2 Bedrooms	$1,920
3 Bedrooms	$2,530
4 Bedrooms	$2,760
5 Bedrooms	$3,202
6 Bedrooms	$3,586
7 Bedrooms	$3,873
8 Bedrooms	$4,067

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
2BR	$1,920	$229,114	0.84%	C
3BR	$2,530	$291,889	0.87%	C
4BR	$2,760	$347,560	0.79%	D
5BR	$3,202	$400,459	0.8%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32738 (Deltona, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32738, as per the 2026 data, is set at $1870 for a two-bedroom unit. However, the Zillow median price for a two-bedroom home in this area is significantly higher at $227,160. This indicates that the actual rental market prices are likely much higher than the FMR. The price-to-FMR ratio of 10.1x suggests that the average market rent for a two-bedroom unit could be around $18,887 annually ($1870 * 10.1). Given that the FMR represents the maximum amount that a Section 8 voucher holder can pay for rent, there is a significant constraint on their ability to find suitable housing. For instance, a voucher holder would only be able to afford a two-bedroom unit priced at $1870 per month, which is far below the median market rate. This implies that voucher holders might face challenges in securing housing within the ZIP code, especially if landlords are unwilling to accept lower rents. #### Affordability & Renter Profile ZIP code 32738 has a population of 49,368, with 17.8% of residents being renters. The occupancy rate stands at 95.0%, indicating a relatively tight market where most available units are occupied. The median household income in the area is $80,224, and the FMR for a two-bedroom unit represents approximately 28.0% of this income. This suggests that while the FMR is affordable for the median income earner, it is still a substantial portion of their monthly budget. The tight occupancy rate and the relatively high proportion of the median income required for rent indicate that the rental market is competitive. Given the low percentage of renters, it is likely that many residents own their homes, making the rental market a niche but important segment of the overall housing landscape. Voucher holders, who represent a small subset of the rental market, will have limited options due to the high market rates and the low FMR cap. #### Investor Angle From an investor perspective, the key question is whether properties rented at the FMR level can generate positive cash flow. To assess this, we need to consider the typical expenses associated with property ownership, such as mortgage payments, maintenance costs, property taxes, and insurance. Assuming a conservative estimate of total monthly expenses (including mortgage, property tax, insurance, and maintenance) at $1,500 for a two-bedroom unit, renting at the FMR of $1870 would yield a positive cash flow of $370 per month. This positive cash flow is crucial for investors looking to generate returns from their investments. However, the investment grade of properties in this ZIP code depends on several factors, including the likelihood of finding tenants willing to pay the FMR, the stability of the local economy, and the potential for appreciation in property values. Given the high median home value and the tight occupancy rate, the investment grade appears to be moderate to good, with the caveat that finding tenants who can afford the FMR might be challenging. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as one-bedroom or studio apartments, which are less expensive. The FMR for a one-bedroom unit is $1520, which is still above the typical expenses of $1,500, providing a modest positive cash flow of $20 per month. This strategy could help mitigate the risk of vacancy and ensure steady income. 2. **Consider Location-Specific Strategies**: Deltona, FL, is part of Volusia County, which has a diverse economic base. Investors should look for areas within the ZIP code that are closer to employment centers, schools, and public transportation. These locations tend to attract more stable tenants and could command slightly higher rents without exceeding the FMR cap. 3. **Engage with Local Real Estate Agents**: To better understand the local rental market dynamics, investors should engage with local real estate agents who can provide insights into the availability of units, tenant preferences, and the willingness of landlords to accept Section 8 vouchers. This could help identify opportunities for acquiring properties that are more likely to be rented by voucher holders. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 32738 is to **Hold**. While there is potential for positive cash flow, the high price-to-FMR ratio and the tight rental market suggest that finding suitable tenants might be challenging. Investors should focus on smaller units and strategically located properties to maximize their chances of success. Additionally, engaging with local real estate professionals can provide valuable insights and help navigate the complexities of the rental market in this area.

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.