Section 8 Fair Market Rent (FMR) for ZIP 32835 - 2027

Investment Score for ZIP 32835

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	$1,820
1 Bedroom	$1,890
2 Bedrooms	$2,150
3 Bedrooms	$2,680
4 Bedrooms	$3,130
5 Bedrooms	$3,631
6 Bedrooms	$4,067
7 Bedrooms	$4,392
8 Bedrooms	$4,612

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,890	$132,786	1.42%	A
2BR	$2,150	$181,081	1.19%	B
3BR	$2,680	$320,469	0.84%	C
4BR	$3,130	$581,298	0.54%	F
5BR	$3,631	$861,963	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32835 (Orlando, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32835, as per 2026 data, is set at $2220 for a two-bedroom unit. This represents 37.3% of the median household income of $71,418 in the area. However, the actual rental market prices can be higher. For instance, the Zillow median price for a two-bedroom home in this ZIP code is $186,595, which translates into a monthly rent of approximately $700-$800 based on typical rental yields. Given that the Zillow median price is about 7 times the FMR, it suggests that actual rents could be significantly higher than the FMR, potentially creating challenges for Section 8 voucher holders who are constrained by the FMR limits. #### Affordability & Renter Profile ZIP code 32835 has a population of 49,205, with 51.9% being renters. The occupancy rate stands at 93.1%, indicating a relatively tight rental market where demand is high. With a median household income of $71,418, the majority of residents are middle-class individuals or families. The fact that 37.3% of the median income is allocated to a two-bedroom unit suggests that housing costs are a significant portion of the budget for many residents. This makes affordability a critical issue, especially for those relying on Section 8 vouchers. Given the high renter percentage and occupancy rate, it is likely that there is a strong demand for rental properties, particularly for units that fall within the FMR range. However, the high price-to-FMR ratio indicates that many properties may be priced out of reach for voucher holders, leading to potential difficulties in finding suitable housing. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash flow-positive opportunities at the FMR levels. Based on the Zillow median price for a two-bedroom unit at $186,595, the expected rental yield would typically be around 5%-7%. At a 7% yield, the monthly rent would be approximately $1090-$1500, which is significantly below the FMR of $2220. This implies that properties priced at the Zillow median could generate positive cash flow for investors willing to accept the FMR cap. However, the investment grade depends on various factors such as property condition, location, and competition. Given the high occupancy rate and strong demand for rentals, it is reasonable to assume that there is a good chance of maintaining steady occupancy rates. Nonetheless, investors should be aware that the high price-to-FMR ratio might limit their pool of tenants to those who can afford higher rents outside of the voucher program. #### Specific Actionable Insights 1. **Focus on Properties Below FMR Levels**: Investors should target properties that are priced below the FMR levels to ensure they can attract both voucher holders and other renters. For example, a two-bedroom unit priced at $186,595 would have a monthly rent of around $1090-$1500, well below the $2220 FMR. This strategy maximizes the likelihood of positive cash flow while catering to a broader tenant base. 2. **Consider Renovation Projects**: Given the high demand and occupancy rates, renovating older properties to meet modern standards could increase their attractiveness and potentially command higher rents within the FMR range. For instance, a renovated two-bedroom unit could be rented out at $2220, aligning perfectly with the FMR and ensuring compliance with Section 8 requirements. 3. **Engage with Local Housing Authorities**: To better understand the local dynamics and improve the chances of securing tenants through the Section 8 program, investors should engage with local housing authorities. This can provide insights into the availability of vouchers and any specific requirements or preferences for properties in the area. #### Bottom Line For Section 8-focused investors, ZIP code 32835 presents a mixed picture. While there is a strong demand for rental properties and a high occupancy rate, the high price-to-FMR ratio poses challenges in finding properties that are affordable within the voucher limits. Therefore, the recommendation is to **Hold** or **Skip** this ZIP code unless investors can find properties priced significantly below the FMR levels or are willing to undertake renovations to bring them up to standard without exceeding the FMR. In summary, while the market is robust and attractive for general rental investments, the constraints imposed by the FMR make it less favorable for investors specifically targeting Section 8 voucher holders.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.