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 | $1,870 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $3,220 |
| 5 Bedrooms | $3,735 |
| 6 Bedrooms | $4,183 |
| 7 Bedrooms | $4,518 |
| 8 Bedrooms | $4,744 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,950 | $138,092 | 1.41% | A |
| 2BR | $2,210 | $216,111 | 1.02% | B |
| 3BR | $2,760 | $414,742 | 0.67% | D |
| 4BR | $3,220 | $630,417 | 0.51% | F |
| 5BR | $3,735 | $1,043,811 | 0.36% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 32779, Longwood, FL, presents a robust environment for landlords and small-portfolio investors. The median home value stands at $536,759, indicating a relatively high-end market where property values reflect significant investment potential. With only 0.3% of listings experiencing price reductions, it's evident that sellers maintain considerable pricing power. This stability suggests that homes are likely to retain their value, and any adjustments are minimal. The median days on market (DOM) of 24 days further underscores the demand for properties in this area, as homes are sold quickly, often before reaching their full asking price.
The setup implies a scenario where long-term investors can expect steady performance. However, the appreciation thesis must be carefully considered. While the current median home value and low percentage of price reductions suggest stability, they do not necessarily indicate rapid growth. Long-term appreciation will depend on broader economic factors, such as job creation, population growth, and infrastructure development, which are not directly captured by the current data.
On the rental side, the Fair Market Rent (FMR) for ZIP 32779 in fiscal year 2024 is projected at $2,230, while the current market rent (ZORI) is $2,042. This gap signals an opportunity for landlords to gradually increase rents, aligning with the FMR trend. As the rental market adjusts to meet the FMR, landlords can expect a natural upward pressure on rental rates, enhancing cash flow over time.
For those holding properties for extended periods, the key lies in maintaining quality and positioning properties to attract tenants willing to pay closer to the FMR. This strategy leverages the existing demand and the anticipated rise in rental values without relying on speculative appreciation.
In summary, the combination of a stable median home value, minimal price reductions, and quick sales times points to a resilient market in Longwood, FL. The rental dynamics, with the FMR exceeding the current ZORI, provide a path for gradual rent increases. These conditions collectively support a conservative yet positive outlook for long-term investment in the area.
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.