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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $890 | $144,490 | 0.62% | D |
| 2BR | $1,110 | $214,658 | 0.52% | F |
| 3BR | $1,540 | $318,359 | 0.48% | F |
| 4BR | $1,820 | $475,113 | 0.38% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP code 34448, Homosassa, Florida, reveals a significant gap between the Fair Market Rent (FMR) and the market rent, which is crucial for landlords and small-portfolio investors. The FMR for the area, set at $1,090 for fiscal year 2024, stands notably lower than the actual market rent, measured at $1,931 using the Zillow Rent Index (ZORI).
This discrepancy amounts to a difference of $841 per month, or approximately 77.1%, between what the government will pay and the open-market rental rate. For investors, this means that accepting Section 8 tenants comes with a substantial financial trade-off. Despite the lower FMR, the demand for affordable housing remains high, with only 14.6% of residents being renters. This indicates a limited pool of potential tenants who might be able to afford market rates, making Section 8 properties an attractive option for many.
However, the cost of housing voucher tenants below open-market rates must be carefully considered. The median home value in Homosassa is $266,454, and the median household income is $45,916, suggesting that the majority of homeowners can afford higher rents. Yet, the lower income levels indicate a strong need for subsidized housing. Landlords must balance the guaranteed rent payments from the Housing Choice Voucher program against the lower overall income received compared to market rates.
In conclusion, while the gap between FMR and market rent in ZIP 34448 is stark, it does not necessarily mean that Section 8 properties are poor investments. The stability of rent payments and the potential for filling a critical housing need can justify the reduced income. Investors should weigh these factors against their own financial goals and the local demand for affordable housing.
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.