Section 8 Fair Market Rent (FMR) for ZIP 34431 - 2027

Location: Ocala, FL | Metro: Levy County, FL HUD Metro FMR Area

Investment Score for ZIP 34431

Monthly Rent (2BR)

$1,240

Median Price (2BR)

$194,883

1% Rule

0.64%

Annual Yield

7.64%

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	$1,020
1 Bedroom	$1,060
2 Bedrooms	$1,240
3 Bedrooms	$1,600
4 Bedrooms	$1,720
5 Bedrooms	$1,995
6 Bedrooms	$2,234
7 Bedrooms	$2,413
8 Bedrooms	$2,534

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
2BR	$1,240	$194,883	0.64%	D
3BR	$1,600	$278,982	0.57%	F
4BR	$1,720	$373,226	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

9,785

Median Household Income

$56,534

Housing Units

4,922

Renter Percentage

8.9%

Occupancy Rate

84.1%

Renter Occupied

367

To determine if you should buy in ZIP code 34431 (Dunnellon, FL) for Section 8 purposes, follow this decision tree based on the provided data:

Step 1: Debt Service Coverage Ratio (FMR vs. Property Value)

If the Fair Market Rent (FMR) of $1030 does not cover the debt service on a property valued at $265,426, then the answer is No. The FMR in Dunnellon, FL for FY 2024 is $1030, which is insufficient to meet the financial obligations associated with such a high property value.
If the FMR of $1030 does cover the debt service on a property valued at $265,426, proceed to Step 2.

Step 2: Market Rent Comparison (ZORI vs. FMR)

If the Zillow Observed Rental Index (ZORI) of $1500 is significantly above the FMR of $1030, the answer is It Depends. This suggests that while there's potential for higher market rents, Section 8 tenants would only pay up to the FMR. You must weigh the benefits of higher rents against the challenges of finding non-Section 8 tenants willing to pay the ZORI rate.
If the ZORI of $1500 is at or below the FMR of $1030, proceed to Step 3.

Step 3: Demand Assessment (Renter Percentage and Days on Market)

If the percentage of renters is 8.9% and there's an adequate supply of properties (N/A days on market indicates insufficient data), the answer is It Depends. With a relatively low percentage of renters, you need to consider whether the demand for Section 8 housing is sufficient. Insufficient data on days on market makes it challenging to assess how quickly properties are rented.

In summary, ZIP code 34431 presents a scenario where the primary concern is the alignment between the FMR and the debt service coverage ratio of the property. If the FMR cannot support the debt service, investment here for Section 8 is not advisable. If it can, then the disparity between ZORI and FMR needs to be considered, along with the limited renter base. Due to the lack of detailed days on market data, making a definitive recommendation requires further investigation into local rental trends and the specific needs of Section 8 tenants in Dunnellon, FL.

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.