Section 8 Fair Market Rent (FMR) for ZIP 32839 - 2027

Investment Score for ZIP 32839

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	$1,540
1 Bedroom	$1,600
2 Bedrooms	$1,820
3 Bedrooms	$2,270
4 Bedrooms	$2,650
5 Bedrooms	$3,074
6 Bedrooms	$3,443
7 Bedrooms	$3,718
8 Bedrooms	$3,904

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
1BR	$1,600	$107,381	1.49%	A
2BR	$1,820	$138,889	1.31%	A
3BR	$2,270	$298,613	0.76%	D
4BR	$2,650	$365,615	0.72%	D
5BR	$3,074	$640,255	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32839 (Orlando, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32839 in Orlando, FL, is set by HUD for 2026 as follows: - 0 Bedroom: $1,550 - 1 Bedroom: $1,620 - 2 Bedrooms: $1,850 - 3 Bedrooms: $2,320 - 4 Bedrooms: $2,740 These figures represent the maximum rent that a Section 8 voucher holder can pay based on the size of their unit. However, the actual rents in the area need to be considered to understand how these vouchers are utilized. The Zillow median price for a 2-bedroom property in ZIP 32839 is $138,943, which is significantly lower than the FMR. This suggests that the rental market in this ZIP code is relatively expensive compared to the purchase market, with a price-to-FMR ratio of 6.3x. Given the high rent-to-income ratio, voucher holders face significant constraints. For instance, a 2-bedroom unit at $1,850 would consume 46.9% of the median household income of $47,313, leaving little room for other expenses. This indicates that the FMR is likely higher than what many residents can afford without assistance, making the voucher program crucial for maintaining housing stability in the area. #### Affordability & Renter Profile ZIP 32839 has a population of 53,242, with a substantial 75.1% of the households being renters. This high percentage of renters suggests a strong demand for rental properties, particularly among low- to moderate-income individuals who rely heavily on government assistance programs like Section 8. The occupancy rate of 83.6% further supports the notion that the market is relatively tight, with most units occupied. The median household income of $47,313 is below the national average, indicating that many residents are economically vulnerable. Given the high rent-to-income ratio, affordability is a critical issue. The FMR for a 2-bedroom unit is $1,850, which is nearly half of the median income, suggesting that many residents struggle to find affordable housing without assistance. This ZIP code appears to be a tight market, with limited supply and high demand, especially among those who depend on rental assistance. The high percentage of renters and the occupancy rate indicate that there is little excess capacity in the rental market, leading to competition for available units. #### Investor Angle From an investor’s perspective, the key question is whether the rental market at FMR levels is cash-flow positive. Given the Zillow median price for a 2-bedroom unit at $138,943 and the FMR of $1,850, we can calculate the potential cash flow. Assuming a typical mortgage rate of 5%, the monthly payment on a $138,943 property would be approximately $768, leaving a potential net cash flow of $1,082 per month before taxes and maintenance costs. This calculation shows that investing in properties at or near the FMR could be profitable, assuming reasonable operating expenses. However, the investment grade of the ZIP code depends on several factors, including the local economy, job market, and the stability of the tenant base. With a high percentage of renters and a significant portion of the population relying on government assistance, the risk profile of the investment must be carefully considered. The high rent-to-income ratio also implies that tenants might have difficulty paying rent if their income fluctuates, which could impact the stability of cash flows. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high rent-to-income ratio, smaller units (0BR and 1BR) may be more attractive to voucher holders. These units are priced at $1,550 and $1,620 respectively, which are more manageable for low-income households. Investing in properties that can be converted into smaller units could provide a steady stream of Section 8 tenants. 2. **Consider Multi-family Properties**: Multi-family properties often have economies of scale that can help manage costs more effectively. A 2-bedroom unit at $1,850 is already consuming a large portion of the median income, so multi-family properties can offer more units at similar price points, increasing the likelihood of attracting multiple Section 8 tenants. 3. **Monitor Local Economic Indicators**: While the rental market appears tight, it is important to monitor local economic indicators such as unemployment rates and job growth. If the local economy weakens, it could affect the ability of tenants to maintain stable employment, impacting their ability to pay rent even with assistance. #### Bottom Line For Section 8-focused investors, ZIP 32839 presents a mixed picture. On one hand, the high percentage of renters and the tight market suggest strong demand for rental properties. On the other hand, the high rent-to-income ratio and reliance on government assistance introduce risks related to tenant stability and cash flow. **Recommendation**: **Buy** with caution. Focus on smaller units and multi-family properties, and closely monitor local economic conditions. The potential for cash-flow positive investments exists, but thorough due diligence is essential to mitigate risks.

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.