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 | $1,510 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,600 |
| 5 Bedrooms | $3,016 |
| 6 Bedrooms | $3,378 |
| 7 Bedrooms | $3,648 |
| 8 Bedrooms | $3,830 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,570 | $173,801 | 0.9% | C |
| 2BR | $1,780 | $293,722 | 0.61% | D |
| 3BR | $2,220 | $432,106 | 0.51% | F |
| 4BR | $2,600 | $618,440 | 0.42% | F |
| 5BR | $3,016 | $940,096 | 0.32% | F |
U.S. Census Bureau data (2024)
ZIP code 32806 is located in Orlando, FL, and represents a residential area with a population of 26,096. Thirty percent of the residents are renters, indicating a moderate demand for rental properties. The median household income in this neighborhood stands at $89,046, reflecting a middle-class community with decent financial stability. Median home values are notably high at $438,410, suggesting a mix of owner-occupied homes and rental properties that cater to families and professionals.
The rent economics in ZIP 32806 are compelling for investors. The Fair Market Rent (FMR), which is set by HUD for Section 8 vouchers, is $1,770 for the fiscal year 2024. This is slightly above the current market rent, measured by Zillow's ZORI index, which is $1,665. This means that landlords participating in the Section 8 program can expect a modest premium over market rates, providing a buffer against inflation and maintenance costs.
Given these economic conditions, ZIP 32806 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability offered by Section 8 vouchers ensures a steady stream of income with minimal tenant turnover risk. The slight premium on FMR compared to market rent makes it a financially viable option. On the other hand, hands-on investors looking to add value could find opportunities to improve property quality and potentially command higher rents in a neighborhood where home values and incomes are relatively robust.
Investors should consider the local market dynamics, including the balance between homeownership and renting, when deciding whether to pursue hands-off or hands-on strategies. With a significant portion of the population renting, there is a clear need for affordable housing solutions that Section 8 can provide. However, the presence of a strong median income suggests that there is also a market for higher-quality rentals that could appeal to tenants willing to pay above the average market rate.
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.