Section 8 Fair Market Rent (FMR) for ZIP 32746 - 2027

Investment Score for ZIP 32746

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	$1,930
1 Bedroom	$2,010
2 Bedrooms	$2,280
3 Bedrooms	$2,850
4 Bedrooms	$3,320
5 Bedrooms	$3,851
6 Bedrooms	$4,313
7 Bedrooms	$4,658
8 Bedrooms	$4,891

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	$2,010	$141,178	1.42%	A
2BR	$2,280	$223,939	1.02%	B
3BR	$2,850	$402,640	0.71%	D
4BR	$3,320	$607,420	0.55%	F
5BR	$3,851	$922,290	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32746 (Lake Mary, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32746, as of 2026, is set at $2280 for a two-bedroom unit. This amount represents 26.1% of the median household income in Lake Mary, which stands at $104,775. The FMR is designed to reflect the average rent that voucher holders can afford in the area. However, the actual rents in the market can be significantly higher. For instance, the Zillow median price for a two-bedroom home in Lake Mary is $227,249, indicating a price-to-FMR ratio of approximately 8.3x. This suggests that the actual rental costs could be much higher than the FMR, creating a potential constraint for voucher holders who might struggle to find units within their budget. #### Affordability & Renter Profile Given the median household income of $104,775, the FMR for a two-bedroom unit at $2280 is relatively affordable, accounting for just over a quarter of the median income. However, with 36.6% of the population being renters, the demand for affordable housing is substantial. The occupancy rate of 92.9% indicates a tight rental market where available units are quickly occupied, suggesting that there is little oversupply of rental properties. Consequently, the competition for rental units is likely high, especially among those who rely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 32746 presents a mixed picture. The FMR for a two-bedroom unit is $2280, but the actual median rental price is likely to be much higher given the price-to-FMR ratio of 8.3x. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental rates and the cost of acquisition. If an investor purchases a two-bedroom property for $227,249 and rents it out at the FMR of $2280, they would need to ensure that the monthly rental income covers all expenses including mortgage payments, maintenance, insurance, and other operating costs. Assuming a conservative mortgage rate of 4%, the monthly mortgage payment alone would be around $1100, leaving a significant portion of the FMR for other expenses. Therefore, while the FMR provides a baseline for affordability, it may not be sufficient to generate positive cash flow unless the investor can acquire properties at a lower price or secure units with below-market rents. In terms of investment grade, the high median household income and strong occupancy rates suggest that the area has a stable economic base and a reliable tenant pool. However, the tight rental market and high price-to-FMR ratio indicate that there might be limited opportunities for acquiring properties at prices that align well with the FMR. Investors should carefully evaluate the local rental market dynamics and consider the possibility of securing below-market rents through strategic negotiations or by targeting specific segments of the rental market. #### Specific Actionable Insights 1. **Target Below-Market Rents**: Given the high price-to-FMR ratio, investors should focus on securing rental agreements at rates slightly above the FMR but still below the market average. This approach can help ensure positive cash flow while remaining competitive in the rental market. For example, negotiating a rent of $2400 for a two-bedroom unit would provide a buffer for expenses while still being attractive to voucher holders. 2. **Focus on Smaller Units**: Larger units like three-bedroom and four-bedroom homes have higher FMRs ($2860 and $3380 respectively). These higher FMRs may be more challenging for voucher holders to afford, especially considering the high median household income. Investing in smaller units, such as one-bedroom or two-bedroom apartments, could be more viable as they are closer to the FMR and thus more accessible to voucher holders. #### Bottom Line For Section 8-focused investors, the ZIP code 32746 presents a challenging yet potentially rewarding market. While the high median household income and occupancy rates suggest a stable and desirable location, the tight rental market and high price-to-FMR ratio indicate that finding cash-flow positive investments at FMR may be difficult. Therefore, the recommendation is to **Hold** on existing investments and **Skip** new acquisitions unless they can be secured at below-market rates or in smaller units that are more aligned with the FMR. Investors should also be prepared to negotiate aggressively to secure rents that balance affordability with profitability. This analysis is based solely on the provided data and does not account for any external factors or recent developments in the market. Investors should conduct further research and due diligence before making any decisions.

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.