Location: Lakeland-Winter Haven, FL | Metro: Lakeland-Winter Haven, FL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
U.S. Census Bureau data (2024)
The median home value in ZIP code 33877, located in Waverly, Florida, is estimated at $221,683. This figure provides a baseline for understanding the potential investment dynamics within the area.
To derive the rough Section 8 cap-rate picture, we first annualize the Fair Market Rent (FMR) for a two-bedroom apartment, which stands at $1170 per month for fiscal year 2024. This translates to an annual rent of $14,040. Given the median home value, the implied gross yield for a Section 8 property would be approximately 6.33%. The calculation is as follows:
Next, let us consider the scenario where the market rent is used instead. However, the market rent data is currently unavailable, making it impossible to calculate the exact gross yield. In such cases, investors should rely on the Section 8 FMR as a conservative estimate until more accurate market rent data becomes available.
Given the 0.0% renter density and the lack of days-on-market (DOM) data, the Section 8 scenario appears more realistic. The absence of market rent data suggests that the area might have limited rental activity, making the guaranteed Section 8 rent more reliable. Additionally, the low renter density indicates that there is a smaller pool of potential market renters, further supporting the reliance on Section 8 tenants.
In conclusion, while the market rent scenario cannot be fully quantified due to missing data, the Section 8 scenario offers a clear gross yield of 6.33%, based on the annualized 2BR FMR and the median home value. This yield serves as a solid benchmark for potential investments in ZIP 33877.
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.