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 | $1,570 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,700 |
| 5 Bedrooms | $3,132 |
| 6 Bedrooms | $3,508 |
| 7 Bedrooms | $3,789 |
| 8 Bedrooms | $3,978 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,850 | $265,517 | 0.7% | D |
| 3BR | $2,320 | $368,370 | 0.63% | D |
| 4BR | $2,700 | $487,197 | 0.55% | F |
| 5BR | $3,132 | $619,696 | 0.51% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 32776 under the Section 8 program begin with tenant turnover. The market rent stands at $1,514, while the Fair Market Rent (FMR) for FY 2024 is set at $1,780. This discrepancy can lead to higher tenant churn rates, as voucher holders might struggle to find properties that fit their budget, leaving landlords to deal with frequent vacancies and associated costs.
Vacancy exposure is another critical concern. With no data available on days on market (DOM), it's challenging to predict how long a property might remain vacant. However, the gap between market rent and FMR suggests that landlords may face prolonged vacancy periods due to limited voucher holder options.
Deferred maintenance is a significant risk factor, especially when considering the typical home value of $410,510 and the median income of $100,573. These figures indicate that homeowners might not have the financial buffer to promptly address necessary repairs, which could affect the overall condition of rental properties and increase maintenance costs for landlords.
Despite these risks, the high renter share of 9.4% in ZIP 32776 points to a robust demand for rental properties. A dense rental market often translates into higher demand for Section 8 vouchers, providing a steady stream of tenants willing to pay the FMR. This strong tenant pool can mitigate some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.