Location: Orlando-Kissimmee-Sanford, FL | Metro: Ocala, 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)
A decision tree for evaluating whether to purchase properties in ZIP code 32784 (Umatilla, FL) for Section 8 investment can be constructed around three key questions.
1) Does the Fair Market Rent (FMR) of $1460 cover the debt service on a $291,990 property?
No: The FMR of $1460 does not sufficiently cover the debt service for a property valued at $291,990. A mortgage payment on such a property would likely exceed this amount, making it financially unfeasible to rely solely on Section 8 vouchers for income.
Yes: This scenario is unlikely given the property value and the FMR. For a property costing $291,990, the monthly mortgage payment would typically be higher than the FMR of $1460, especially when considering interest rates and loan terms.
It Depends: If the landlord has equity or can secure a low-interest rate loan, the FMR might be sufficient. However, based on standard financing practices, the FMR of $1460 is insufficient to clear debt service on a $291,990 property.
2) Is the market rent of $1,020 above, at, or below the FMR?
Below FMR: The market rent of $1,020 is below the FMR of $1460. This indicates that there is potential to earn more from Section 8 tenants than from market-rate rentals, which could be beneficial if the property's operating costs are low.
At FMR: Not applicable since the market rent is clearly below the FMR.
Above FMR: Not applicable since the market rent is clearly below the FMR.
3) Are 15.1% of renters plus N/A-day days on the market enough demand?
Yes: If the percentage of renters is stable and the number of days on the market (DOM) is low, indicating quick turnover, then the demand is likely sufficient. However, the lack of data on DOM suggests caution in this assessment.
No: Without a specific number for days on the market, it's difficult to determine if the demand is strong enough. Typically, a high DOM indicates weak demand, but in this case, we cannot quantify this risk.
It Depends: The 15.1% of renters is a starting point, but the critical missing piece is the DOM data. If the DOM is short, it supports a positive demand outlook. If long, it indicates challenges in renting out properties quickly.
In conclusion, while the FMR exceeds the market rent, making Section 8 potentially more lucrative, the primary concern is the ability of the FMR to cover debt service on a $291,990 property. Additionally, the demand for rental properties is somewhat unclear without DOM data. Therefore, purchasing in ZIP 32784 for Section 8 purposes is not advisable unless other factors, such as property-specific costs or unique financing opportunities, significantly alter the financial landscape.
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.