Section 8 Fair Market Rent (FMR) for ZIP 32824 - 2027

Investment Score for ZIP 32824

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,790
1 Bedroom	$1,870
2 Bedrooms	$2,120
3 Bedrooms	$2,650
4 Bedrooms	$3,090
5 Bedrooms	$3,584
6 Bedrooms	$4,014
7 Bedrooms	$4,335
8 Bedrooms	$4,552

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,120	$243,195	0.87%	C
3BR	$2,650	$352,929	0.75%	D
4BR	$3,090	$443,266	0.7%	D
5BR	$3,584	$565,987	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32824 (Orlando, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 32824 in Orlando, FL, for 2026 indicate that the rent for a two-bedroom apartment is set at $2,180. However, the Zillow median price for a two-bedroom home in this area is $248,349, which translates to a price-to-FMR ratio of 9.5x. This high ratio suggests that the actual rental prices in the market are significantly higher than the FMR. For instance, if we assume a typical mortgage payment of $1,250 per month (based on a 30-year fixed rate mortgage at 4.5%, with a down payment of 20%), property taxes, insurance, and maintenance costs would need to be factored in. These additional expenses could easily push the total monthly cost above the FMR. Therefore, voucher holders face significant constraints in finding affordable housing within the parameters of their vouchers. The FMR for a two-bedroom unit covers only 30.8% of the median household income, indicating that even without the voucher, renting a two-bedroom property is a substantial expense for many residents. #### Affordability & Renter Profile ZIP code 32824 has a population of 58,368, with 24.1% being renters. This means there are approximately 14,060 renters in the area. Given the occupancy rate of 87.8%, it indicates that the rental market is relatively tight, with most available units being occupied. The median household income in this ZIP code is $84,841, which means that the average renter earns around $84,841 annually. With the FMR for a two-bedroom unit being $2,180, this represents a significant portion of the average renter’s income. The high price-to-FMR ratio also suggests that the market is competitive, with landlords likely charging more than the FMR to maximize profits. This tight market makes it challenging for low-income individuals to find affordable housing, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 32824 presents a mixed picture. While the median home price is high, the rental market is also robust, with demand outpacing supply. However, the FMR for a two-bedroom unit is only $2,180, which is far below the potential rental rates that could be charged. To determine whether this ZIP code is cash-flow positive at FMR, we must consider the typical mortgage payment, property taxes, insurance, and maintenance costs. Assuming a mortgage payment of $1,250, property taxes of $1,000 per year (or $83.33 per month), insurance of $100 per month, and maintenance costs of $100 per month, the total monthly cost would be approximately $1,533.33. At an FMR of $2,180, this would leave a positive cash flow of $646.67 per month before considering other factors like vacancy rates and management fees. However, the investment grade for this ZIP code is moderate due to the high price-to-FMR ratio. While there is strong demand, the risk of overpaying for properties and the challenge of attracting tenants who can only afford the FMR make it less attractive compared to areas with a lower price-to-FMR ratio. Investors should carefully assess their ability to manage properties and attract tenants willing to pay the FMR. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should look for properties where the rent can be set below the FMR but still provide a reasonable profit margin. For example, a two-bedroom property rented at $2,000 instead of $2,180 could still offer a positive cash flow while being more attractive to voucher holders. This strategy could help secure long-term tenants and reduce vacancy rates. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units such as one-bedroom apartments might be more feasible for voucher holders. The FMR for a one-bedroom unit is $1,910, which is still a significant portion of the median income but potentially more manageable. Investing in one-bedroom units could provide a better balance between affordability and profitability. 3. **Utilize Property Management Services**: Due to the tight rental market and the challenges of attracting tenants who can only afford the FMR, utilizing professional property management services could be beneficial. These services can help maintain properties and manage tenant relationships effectively, ensuring a steady stream of income and minimizing vacancy periods. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 32824 is to **Hold**. While there is potential for positive cash flow, the risks associated with overpaying for properties and the difficulty in attracting tenants who can only afford the FMR make it a moderate investment opportunity. Investors should focus on properties that offer a balance between affordability and profitability, such as one-bedroom units or two-bedroom units with slightly below FMR rents. Additionally, leveraging professional property management services could enhance the feasibility of investing in this area.

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.