Location: Wildwood-The Villages, FL | Metro: Wildwood-The Villages, FL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $970 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $173,008 | 0.69% | D |
| 3BR | $1,490 | $244,786 | 0.61% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,100 for ZIP 33538 in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $214,072. To address this, let's consider the typical mortgage payment for a property of that value. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly mortgage payment would be approximately $1,035. Thus, the FMR does indeed cover the mortgage payment, with a slight surplus of $65 per month. This leaves room for additional expenses such as maintenance, insurance, and property taxes.
The investor may also doubt the adequacy of renter demand given that only 29.8% of households in ZIP 33538 rent their homes. However, it's important to note that the rental vacancy rate is a key indicator of demand. A lower percentage of renters does not necessarily mean low demand; in fact, if the vacancy rate is low, it suggests strong demand relative to supply. According to recent data, the vacancy rate in Lake Panasoffkee is below the national average, indicating that there is sufficient demand for rental properties despite the relatively low percentage of renters.
A final concern could be whether voucher payments will keep up with the market rents, which currently stand at $1,038. The FMR of $1,100 is higher than the market rent, suggesting that voucher holders can afford to pay the market rate. Moreover, the Housing Choice Voucher Program typically adjusts its payment standards annually to reflect changes in market conditions. In ZIP 33538, the voucher payment standard is set close to the FMR, meaning that it should adequately cover the market rents. However, it's worth noting that the actual amount paid out through vouchers can vary based on individual tenant income and other factors. Therefore, while the data suggests that vouchers will generally cover market rents, there may be instances where adjustments are needed.
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.