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 | $1,150 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,730 | $332,436 | 0.52% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 32798 presents a unique set of conditions that both challenge and offer opportunities to landlords and small-portfolio investors. With a median home value at $335,548, the area has established itself as a moderate-cost market. However, the fact that only 0.1% of listings have been reduced indicates a strong resistance to lowering asking prices, which signals significant pricing power among sellers.
This pricing power, combined with the absence of data on the median days on market (DOM), suggests that homes in ZIP 32798 are either selling quickly or there is a limited supply of homes available for sale. In either case, it points towards a seller's market where landlords can maintain higher rental rates without fear of losing tenants to homeownership due to high home prices.
Moving to the rental side, the Fair Market Rent (FMR) for ZIP 32798 in fiscal year 2024 is set at $1,460, whereas the current market rate, according to Census ACS data, stands at $1,131. This discrepancy indicates an upward pressure on rents, as the government benchmark is higher than the actual market rates. Landlords should prepare to gradually increase their rental rates to align with the FMR, capturing the potential increase in rental demand and affordability standards.
For long-term hold investors, the setup implies a realistic appreciation thesis. The consistent pricing power in the housing market, coupled with the gap between current market rents and the FMR, suggests that values could rise as rental demand increases and property owners adjust their rates to match the FMR. This dynamic supports the idea that properties in ZIP 32798 will likely appreciate over time, providing a steady return on investment beyond rental income.
However, it is crucial to recognize that the appreciation thesis is contingent upon broader economic factors such as employment growth, migration trends, and overall economic stability. Despite the positive signals from the current data, investors must remain vigilant to changes in these macroeconomic indicators that could affect the local real estate market.
In summary, ZIP 32798 offers a robust environment for landlords and small-portfolio investors. Pricing power remains strong, and there is room for rental rate adjustments to meet the FMR. Long-term appreciation appears likely, but investors should monitor external factors that influence the local market.
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.