Section 8 Fair Market Rent (FMR) for ZIP 32783 - 2027

FY 2027 Fair Market Rent Rates

The analysis of the Section 8 cap-rate for ZIP code 32783 in Florida reveals several key points that are crucial for landlords and small-portfolio investors.

First, let's consider the annualized Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $1430 per month for fiscal year 2024. This translates into an annual rental income of $17,160. However, the median home value in this ZIP code is currently not available, making it challenging to calculate a precise cap-rate for homeowners renting out properties under Section 8. The cap-rate is typically calculated as the net operating income (NOI) divided by the property value, expressed as a percentage. Without the median home value, we cannot provide a specific cap-rate figure.

In the absence of the median home value, we can still derive an implied gross yield based on the monthly FMR. The gross yield would be the annual rental income divided by the property value. For instance, if a property were valued at $200,000, the gross yield would be approximately 8.58% ($17,160 / $200,000 * 100). This calculation assumes that the property's value is representative of the area's median home value, which is not possible without the actual data point.

The second scenario involves comparing the FMR to the market rent, which is also not available. If the market rent were higher than the FMR, the gross yield would be lower when using the FMR for Section 8 rentals. Conversely, if the market rent were equal to or lower than the FMR, the gross yield would be more favorable. Given the lack of market rent data, this comparison remains speculative.

Regarding the renter density and days on market (DOM), these figures are also unavailable, which further complicates the assessment of the likelihood of finding tenants through Section 8. Renter density affects the pool of potential tenants, while DOM indicates how quickly homes are rented out. Both factors are critical in determining the feasibility of Section 8 participation for landlords.

In conclusion, while the annualized FMR provides a basis for calculating an implied gross yield, the absence of median home value and market rent data makes it impossible to offer a definitive cap-rate or gross-yield comparison. Landlords and investors must gather local market data to make informed decisions about participating in the Section 8 program in ZIP code 32783.

Data Sources: FMR data from HUD (2027).

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.