Location: Orlando-Kissimmee-Sanford, FL | Metro: Lakeland-Winter Haven, 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 | $1,900 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $3,220 |
| 4 Bedrooms | $3,880 |
| 5 Bedrooms | $4,501 |
| 6 Bedrooms | $5,041 |
| 7 Bedrooms | $5,444 |
| 8 Bedrooms | $5,716 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,390 | $225,256 | 1.06% | B |
| 3BR | $3,220 | $311,483 | 1.03% | B |
| 4BR | $3,880 | $373,576 | 1.04% | B |
| 5BR | $4,501 | $547,740 | 0.82% | C |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 33896, Davenport, FL, might raise several concerns regarding the feasibility of investing in properties under Section 8 guidelines. Here are three common objections, along with the data to address them.
Objection 1: Will Fair Market Rent (FMR) of $1,990 for the fiscal year 2024 cover the mortgage on a $356,459 home?
The FMR of $1,990 does not directly correlate with the mortgage payment on a $356,459 home without knowing the specific interest rate and loan terms. However, it's important to note that the FMR is set to ensure that landlords receive a fair rental amount, which should be sufficient to cover maintenance, insurance, property taxes, and other costs associated with owning a property. If we assume an average interest rate and typical down payment, the FMR should indeed provide a reasonable margin over the mortgage payment, though exact figures depend on individual financial circumstances.
Objection 2: Is there enough renter demand at 54.9%?
The 54.9% renter-occupied rate suggests a moderate level of demand. While it may seem low compared to some urban areas, it's crucial to understand that this figure represents a significant portion of the housing stock in Davenport. With a growing population and limited affordable housing options, this percentage indicates a stable tenant pool. Moreover, the demand for affordable housing is likely to persist, making the 54.9% occupancy rate a viable indicator of steady rental income.
Objection 3: Will vouchers keep pace with market rents of $1,792?
The voucher program aims to maintain affordability and accessibility for tenants. Given that the FMR for ZIP 33896 is set at $1,990 for the upcoming fiscal year, it's reasonable to expect that voucher amounts will adjust accordingly to match the rising cost of living. This adjustment ensures that landlords continue to receive a fair rental price, even if the market rents increase. However, the exact pace of voucher adjustments can vary and may not always align perfectly with market conditions, so monitoring these changes is essential.
In summary, while the data provides insights into the potential challenges and opportunities in ZIP 33896, it's clear that the Fair Market Rent, renter demand, and voucher programs present a balanced environment for landlords and small-portfolio investors. The key to success lies in understanding local market dynamics and staying informed about policy changes.
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.