Location: Orlando-Kissimmee-Sanford, FL | Metro: Orlando-Kissimmee-Sanford, FL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,830 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,160 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,150 |
| 5 Bedrooms | $3,654 |
| 6 Bedrooms | $4,092 |
| 7 Bedrooms | $4,419 |
| 8 Bedrooms | $4,640 |
U.S. Census Bureau data (2024)
The median home value in ZIP code 32831, Orlando, FL, is $384,684. To derive the Section 8 cap-rate picture, we need to compare the annualized fair market rent (FMR) for a two-bedroom unit against the market rent and median home value.
The annualized FMR for a two-bedroom unit in ZIP 32831 for FY 2024 is $2110. If we use this figure, the implied gross yield would be calculated as follows:
Using the FMR, the annual rental income for a two-bedroom unit would be $2110 * 12 = $25,320. Given the median home value of $384,684, the implied gross yield is approximately 6.58%.
However, the market rent for ZIP 32831 is listed at $2,580 per month, leading to an annual rental income of $2,580 * 12 = $30,960. With the same median home value, the implied gross yield is approximately 8.05%.
The higher gross yield of 8.05% derived from the market rent is more realistic given the 47.7% renter density in the area. The days on market (DOM) data is not available, but a higher renter density typically indicates a stronger rental market, making it more likely that properties will be rented out at closer to the market rate rather than the FMR. Therefore, investors should consider the 8.05% gross yield as a more accurate representation of potential returns in ZIP 32831.
Data Sources: FMR data from HUD (2027). 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.