Location: Homosassa Springs, FL | Metro: Homosassa Springs, 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 | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $890 | $139,583 | 0.64% | D |
| 2BR | $1,110 | $231,066 | 0.48% | F |
| 3BR | $1,540 | $389,096 | 0.4% | F |
| 4BR | $1,820 | $509,193 | 0.36% | F |
U.S. Census Bureau data (2024)
The real estate market in Hernando, Florida (ZIP 34442), presents a unique setup for both landlords and small-portfolio investors. With a median home value of $358,217, the area reflects a stable housing market. The fact that only 0.3% of listings have reduced their asking prices indicates strong seller pricing power, suggesting that homes are holding their value well. This is further supported by the median days on market (DOM) being at 75 days, which is relatively low, indicating that homes are selling quickly once listed.
The implications of these figures for the next 12-24 months suggest that homeowners can maintain their pricing power due to the limited number of price reductions and quick sales times. This stability in home values provides a solid foundation for long-term investments, as it reduces the risk of significant depreciation in property value.
On the rental side, the data points to an interesting dynamic. The Fair Market Rent (FMR) for ZIP 34442 in fiscal year 2024 is projected to be $1,080, while the actual market rent (ZORI) stands at $1,800. This substantial gap between government estimates and market realities highlights the potential for landlords to charge higher rents, given the demand and willingness to pay among renters.
For long-hold investors, the appreciation thesis in Hernando hinges on several factors. The low percentage of price reductions and quick sales times imply a resilient local economy capable of supporting steady property values. However, the appreciation rate will likely remain modest unless there is a significant change in local economic conditions or an influx of new residents driving up demand. The current setup suggests that maintaining current property values and leveraging rental income will be the primary sources of investment returns.
In summary, the combination of a stable median home value, minimal price reductions, and quick sales times signals a robust market for landlords and investors. The rental market's premium over FMR offers a clear advantage in generating income. While appreciation may not be explosive, the fundamentals point towards a secure and steady investment environment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.