Section 8 Fair Market Rent (FMR) for ZIP 32861 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 32861, located within Orlando-Kissimmee-Sanford County, Florida, operate under specific guidelines that directly impact landlords and small-portfolio investors. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1870. This figure is crucial because it represents the maximum amount that the housing authority will pay towards a tenant's rent.

A voucher does not cover the entire rent amount; rather, it subsidizes the difference between the market rent and what the tenant can afford. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. This means if a tenant's adjusted income is $1,000 per month, they would contribute $300 towards the rent. The remaining amount, up to the SAFMR limit of $1870, is then covered by the Section 8 program.

In addition to the base rent, there are utility allowances that vary based on the size of the unit and location. These allowances are designed to help cover the cost of utilities such as electricity, gas, water, and sewer. However, the exact utility allowance for ZIP 32861 is not specified in the data provided, so it must be calculated according to the local housing authority's standards.

To illustrate, let's assume a two-bedroom apartment in ZIP 32861 has a market rent of $1870, which aligns with the SAFMR. If the tenant contributes $300, the Section 8 program would reimburse the landlord the remaining $1570. If the market rent were higher than $1870, the landlord would have to absorb the difference, as the program only pays up to the SAFMR limit.

Since the local market rent is not available, we cannot calculate the exact reimbursement gap or surplus. However, if the market rent were lower than $1870, landlords could potentially receive more than the actual rent charged, creating a surplus. Conversely, if the market rent exceeds $1870, landlords would face a reimbursement gap, meaning they would receive less than the full market rent from the program.

In summary, landlords in ZIP 32861 should expect the Section 8 program to cover up to $1870 of the rent for a two-bedroom apartment, minus the tenant's contribution based on their income. Utility allowances are additional but must be verified with the local housing authority. The final reimbursement will depend on the actual market rent compared to the SAFMR, leading to either a surplus or a gap for landlords.

Data Sources: FMR data from HUD (2027).

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.