Location: Orlando-Kissimmee-Sanford, FL | Metro: Orlando-Kissimmee-Sanford, FL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 32767 (Paisley, FL) for Section 8 purposes, follow this decision tree:
Step 1: Does the Fair Market Rent (FMR) of $1460 cover the debt service on a property priced at $223,995?
Yes. If the FMR of $1460 is sufficient to cover the mortgage payments, taxes, insurance, and other costs associated with owning a property valued at $223,995, then the first condition is met. This means that the landlord can rely on Section 8 vouchers to maintain financial stability without risking loss.
No. If the FMR of $1460 does not cover the total debt service, purchasing a property in this area for Section 8 would be financially unwise. The landlord would need to subsidize the difference out of pocket, leading to potential losses.
It depends. This scenario arises if there's uncertainty about the exact debt service amount. Calculating the precise debt service involves knowing the interest rate, loan terms, property tax rates, and insurance costs. However, given an average interest rate and typical tax and insurance costs, the FMR of $1460 likely will not cover the debt service on a $223,995 property. For instance, a 30-year fixed-rate mortgage at 5% interest would result in monthly principal and interest payments of approximately $1,180, leaving little room for other expenses.
Step 2: Is the market rent of $971 above, at, or below the FMR?
Above. If the market rent exceeds the FMR, landlords might consider renting to non-Section 8 tenants to maximize income. However, this does not directly affect the suitability for Section 8 investments unless the difference is significant enough to make Section 8 less attractive.
At or Below. If the market rent is at or below the FMR, landlords can expect to receive competitive rental income from Section 8 tenants. In Paisley, the market rent of $971 is below the FMR of $1460, making Section 8 vouchers particularly valuable for covering the gap between market rent and the higher FMR.
Step 3: Are 14.4% of residents renters and do the days on market (DOM) indicate sufficient demand?
Yes. With 14.4% of residents being renters, there is a reasonable level of demand. However, the absence of data regarding days on market (DOM) makes it challenging to assess how quickly properties are rented. If the DOM is short, it indicates strong demand; otherwise, it suggests a slower rental market.
No. If the percentage of renters is too low or the DOM is excessively long, the demand for rental properties in Paisley may not support a Section 8 investment. The current data shows 14.4% of residents are renters, which is a modest figure but still indicates some demand. The lack of DOM data prevents a definitive assessment, so further investigation is necessary.
It depends. The 14.4% of renters suggests a moderate demand for rental housing. However, the lack of DOM data means we cannot fully evaluate the speed at which properties are rented. Landlords should investigate local real estate trends to determine if the market supports quick turnover of rental properties.
In conclusion, while the FMR of $1460 provides a higher rent floor compared to the market rent of $971, the debt service on a $223,995 property likely exceeds the FMR. The moderate demand indicated by 14.4% of renters is present, but the
Data Sources: FMR data from HUD (2027). 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.