Location: Deltona-Daytona Beach-Ormond Beach, FL | Metro: Deltona-Daytona Beach-Ormond Beach, 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 | $1,190 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $234,075 | 0.67% | D |
| 3BR | $2,080 | $339,406 | 0.61% | D |
| 4BR | $2,270 | $470,497 | 0.48% | F |
U.S. Census Bureau data (2024)
ZIP 32744, located in Lake Helen, FL, within the Deltona-Daytona Beach-Ormond Beach, FL HUD Metro FMR Area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1370, which exceeds the current market rent of $1,313. This creates a positive spread that ensures landlords receive higher rental income compared to the local market rate. Given the median home value of $320,415, the rental income generated from properties participating in the Section 8 program provides a stable and predictable cash flow.
The primary advantage of including ZIP 32744 in a Section 8 portfolio is its ability to mitigate risks associated with fluctuating market conditions. The guaranteed rental income, backed by the government, offers a reliable source of cash flow that can offset any potential declines in property values or market rents. This stability is crucial for landlords and small-portfolio investors who seek consistent returns without the volatility often found in the private rental market.
While the area does not present significant opportunities for appreciation, with a 0.2% price-cut share and N/A-day days on market (DOM), it still offers a solid foundation for a diversified investment strategy. The 17.6% renter share indicates a moderate demand for rental housing, and the median income of $112,599 suggests that residents have the financial capacity to cover their living expenses, including rent. However, the focus should remain on the cash-flow benefits rather than appreciation potential, given the low price-cut share and lack of data on days on market.
In conclusion, ZIP 32744 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its alignment with government-subsidized rental rates and the resulting positive spread over market rents provide a secure and dependable income stream for investors. Although appreciation is limited, the area's characteristics make it a valuable component for those looking to stabilize their rental income and manage risk effectively.
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.