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 | $1,330 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $94,302 | 1.46% | A |
| 2BR | $1,570 | $226,591 | 0.69% | D |
| 3BR | $1,960 | $306,711 | 0.64% | D |
| 4BR | $2,290 | $363,041 | 0.63% | D |
| 5BR | $2,656 | $407,290 | 0.65% | D |
U.S. Census Bureau data (2024)
The dynamics of ZIP 32778, located in Tavares, FL, reveal a market where demand closely follows supply, but leans slightly towards favoring landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area stands at $1460 for the fiscal year 2024, while the actual market rent, as indicated by Zillow's ZORI index, is significantly higher at $2,133. This suggests that the rental market is robust and exceeds the government's benchmark, indicating strong tenant interest.
A key indicator of market health is the price-cut share, which in this case is only 0.3%. This low figure implies that landlords are generally able to maintain their asking rents without needing to reduce them to attract tenants. Additionally, the Days on Market (DOM) of 66 days shows that properties are moving relatively quickly, suggesting a healthy level of activity and interest from potential buyers or renters.
The median home value in Tavares is $311,855, a figure that can be used to gauge the overall economic health and property appreciation trends of the area. With a renter share of 21.4%, it becomes evident that there is a consistent segment of the population preferring to rent rather than buy. This statistic points to long-term housing pressure, as a significant portion of residents will continue to seek rental properties, ensuring steady demand for rental units.
In summary, the market in ZIP 32778 is characterized by a balance between supply and demand, with slight indications favoring the landlord. The high market rent compared to the FMR, low price-cut share, and quick DOM times all suggest a vibrant rental market. The substantial renter share highlights the ongoing need for rental properties, making it an attractive market for those investing in real estate to cater to the rental segment.
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.