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 | $1,630 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,480 | $385,361 | 0.64% | D |
| 4BR | $2,950 | $530,907 | 0.56% | F |
| 5BR | $3,422 | $723,691 | 0.47% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 32820 reveals several potential issues that could impact Section 8 landlords and small-portfolio investors. First, tenant turnover could be problematic due to the discrepancy between the market rent of $2,611 and the Fair Market Rent (FMR) set at $2,250 for FY 2024. This gap suggests that tenants might struggle to afford higher rents once their voucher expires, leading to frequent turnovers.
Vacancy exposure is another concern, as the Days on Market (DOM) data is not available. This lack of information makes it difficult to predict how long a property might remain vacant between tenancies, which can significantly affect cash flow.
Deferred maintenance is also a risk, considering the typical home value of $542,370 and a median income of $106,859. These figures indicate that residents might have limited financial resources to cover unexpected repairs or maintenance costs, potentially leaving landlords responsible for additional expenses.
However, these risks are somewhat mitigated by the high renter share of 10.9%. A larger proportion of renters typically translates into greater demand for housing vouchers, which can help maintain occupancy rates and stabilize cash flows.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 32820 supports a relatively stable demand for Section 8 properties. The overall risk for a first-time Section 8 landlord in this area is moderate.
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.