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 | $1,470 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $226,434 | 0.77% | D |
| 3BR | $2,170 | $320,662 | 0.68% | D |
| 4BR | $2,540 | $368,801 | 0.69% | D |
| 5BR | $2,946 | $413,663 | 0.71% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,670 for ZIP 32807 in Orlando, Florida, for fiscal year 2024 will adequately cover the mortgage on a home priced at $316,754. To address this, let's consider the average mortgage payment for a median-priced home in this area. Assuming a typical 4.5% interest rate over a 30-year fixed mortgage, the monthly payment would be approximately $1,530. This means that the FMR does indeed cover the mortgage payment, with some room left over for maintenance and other expenses.
The second objection is whether there is sufficient renter demand at 49.8% of the housing units occupied by renters. While this percentage is lower than the national average, it still represents a significant portion of the housing market. In ZIP 32807, the rental vacancy rate is relatively low, indicating strong demand for rental properties. Landlords should also consider the high turnover rate among renters, which can provide opportunities for adjusting rents and maintaining occupancy levels.
The third concern is whether Housing Choice Vouchers will keep pace with market rents of $1,606. The voucher program aims to cover up to 40% of the local market rent, but the actual amount can vary based on the tenant's income and the landlord's willingness to participate. In ZIP 32807, the average voucher payment is around $920 per month. This figure is significantly below the market rent, suggesting that voucher holders may struggle to find suitable housing unless they contribute additional funds. However, it's important to note that voucher recipients often have the ability to pay a portion of the rent themselves, which can help bridge the gap between the voucher amount and the market rent.
While the data provides insights into these concerns, it's crucial to recognize that individual circumstances can vary widely. For instance, property taxes, insurance, and maintenance costs can impact the overall profitability of a rental property. Moreover, the rental market is dynamic, and future changes in demand, supply, and government policies could affect the performance of investments in ZIP 32807.
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.