Section 8 Fair Market Rent (FMR) for ZIP 34609 - 2027

Investment Score for ZIP 34609

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	$1,650
1 Bedroom	$1,700
2 Bedrooms	$1,980
3 Bedrooms	$2,530
4 Bedrooms	$3,070
5 Bedrooms	$3,561
6 Bedrooms	$3,988
7 Bedrooms	$4,307
8 Bedrooms	$4,522

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	$1,980	$239,987	0.83%	C
3BR	$2,530	$312,536	0.81%	C
4BR	$3,070	$365,421	0.84%	C
5BR	$3,561	$405,149	0.88%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 34609 (Spring Hill, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 34609 is set by HUD for 2026 as follows: - 0BR: $1630 - 1BR: $1730 - 2BR: $2020 (which is 30.5% of the median household income) - 3BR: $2580 - 4BR: $3140 These figures represent the maximum rent that a Section 8 voucher holder can pay for a unit in Spring Hill. However, it is important to understand how these FMRs compare to actual rents in the area. According to Zillow, the median price for a 2BR home in Spring Hill is $242,982. The price-to-FMR ratio for a 2BR unit is approximately 10.0x, which means the median home price is ten times the FMR for a 2BR rental unit. This suggests that actual rents could be significantly higher than the FMR, creating a constraint for voucher holders who might struggle to find units within their budget. #### Affordability & Renter Profile Spring Hill has a population of 47,257, with 16.3% of residents being renters. The median household income in the area is $79,442. Given that the FMR for a 2BR unit is $2020, which represents 30.5% of the median income, it indicates that the majority of renters in Spring Hill are likely to be low-income families or individuals. This makes the housing market quite tight for those relying on Section 8 vouchers, as they would need to find units that do not exceed the FMR. The occupancy rate of 93.3% further supports the notion that the market is relatively tight. With such high occupancy rates, there is limited availability for new tenants, especially those with constrained budgets like Section 8 voucher holders. This tightness could lead to landlords being less inclined to accept Section 8 vouchers, preferring to rent to tenants who can pay market rates. #### Investor Angle From an investor perspective, the ZIP code 34609 offers a mixed picture when considering cash flow and investment grade based on FMRs. Let’s break down the key points: 1. **Cash Flow Positive at FMR**: - For a 2BR unit, the FMR is $2020 per month. If we consider typical operating expenses (such as property taxes, insurance, maintenance, and utilities), which might range from 30% to 50% of the monthly rent, the net cash flow would be between $1010 and $1414 per month. - To determine if this is positive, we need to look at the purchase price and mortgage payments. With a median home price of $242,982, assuming a 20% down payment, the loan amount would be around $194,385. At a conservative interest rate of 5%, the monthly mortgage payment would be approximately $1080. - Therefore, the net cash flow after mortgage payments would be between -$70 and $334 per month, depending on the exact operating expenses. This suggests that while some properties might be cash-flow positive, others could result in a slight negative cash flow. 2. **Investment Grade**: - The investment grade is influenced by factors such as demand, vacancy rates, and the ability to attract tenants. Given the high occupancy rate and the tight market conditions, there is a strong demand for rentals. - However, the high price-to-FMR ratio indicates that the market rents are significantly above the FMR, which could make it challenging to find tenants willing to pay only the FMR. This could affect the overall investment grade, as landlords might face difficulties in filling units with Section 8 tenants. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: - Focus on properties that are priced closer to the FMR. For instance, a 2BR unit priced at $2020 or slightly below would have a better chance of attracting Section 8 tenants. This would ensure a steady stream of rental income without significant risk of vacancy. 2. **Consider Smaller Units**: - Smaller units, such as 0BR or 1BR, have lower FMRs ($1630 and $1730 respectively). These units are more affordable for voucher holders and might have a higher likelihood of being occupied. Additionally, smaller units often have lower operating costs, potentially improving the overall cash flow. 3. **Engage with Local Housing Authorities**: - Building relationships with local housing authorities can help in understanding the specific needs and requirements of Section 8 tenants. This can also provide insights into the number of available vouchers and the likelihood of finding suitable tenants. #### Bottom Line Given the tight market conditions and the high price-to-FMR ratio, the ZIP code 34609 presents a challenging environment for Section 8-focused investors. While there is a strong demand for rentals, the high cost of entry and the potential for negative cash flow make it a risky proposition. **Recommendation**: **Hold** or **Skip**. Investors should carefully evaluate their portfolio strategy and consider other markets with more favorable conditions for Section 8 properties. If they decide to invest in Spring Hill, they should focus on properties that are priced close to the FMR and engage closely with local housing authorities to mitigate risks.

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.