Section 8 Fair Market Rent (FMR) for ZIP 34741 - 2027

Investment Score for ZIP 34741

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	$1,610
1 Bedroom	$1,670
2 Bedrooms	$1,900
3 Bedrooms	$2,370
4 Bedrooms	$2,770
5 Bedrooms	$3,213
6 Bedrooms	$3,599
7 Bedrooms	$3,887
8 Bedrooms	$4,081

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
1BR	$1,670	$124,132	1.35%	A
2BR	$1,900	$175,371	1.08%	B
3BR	$2,370	$303,090	0.78%	D
4BR	$2,770	$416,488	0.67%	D
5BR	$3,213	$568,647	0.57%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 34741 (Kissimmee, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Kissimmee, FL (ZIP 34741), as of 2026, are as follows: - 0BR: $1630 - 1BR: $1710 - 2BR: $1950 (which is 44.6% of the median household income) - 3BR: $2450 - 4BR: $2890 To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and the percentage of renters in the area. With an occupancy rate of 88.6%, it suggests that there is a relatively high demand for housing units. Additionally, 67.1% of the population are renters, indicating a significant portion of the community relies on rental properties. However, the FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent. For instance, a voucher holder can afford up to $1950 for a 2BR unit. This means that landlords must ensure their rents do not exceed these limits to remain eligible for Section 8 vouchers. If actual rents in the market are higher than the FMRs, voucher holders will struggle to find suitable housing, leading to potential challenges in maintaining tenancy. #### Affordability & Renter Profile The median household income in Kissimmee is $52,409. The FMR for a 2BR unit is $1950, which represents 44.6% of the median income. This indicates that a significant portion of the local population may find it challenging to afford a 2BR unit without assistance. Given that 67.1% of the population are renters, it suggests a strong reliance on affordable housing options. The occupancy rate of 88.6% implies that the market is fairly tight, with most available units being occupied. This could lead to competition among renters, particularly those who are not eligible for Section 8 vouchers, driving up rental prices. However, the FMRs provide a benchmark for affordability, ensuring that some portion of the market remains accessible to low-income families. #### Investor Angle From an investor perspective, the key metric is whether the FMRs are sufficient to cover operating costs and generate a positive cash flow. The Zillow median price for a 2BR unit is $180,589, which translates to a price-to-FMR ratio of 7.7x. This ratio is quite high, suggesting that property values are significantly above what voucher holders can afford. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with rental properties. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a conservative estimate of 50% of the FMR going towards mortgage payments and another 20% towards taxes and insurance, the remaining 30% would be available for maintenance and profit. For a 2BR unit, the FMR is $1950. If 50% goes to mortgage ($975) and 20% to taxes and insurance ($390), the remaining $585 would have to cover maintenance and provide a profit. This scenario is likely to result in a negative cash flow unless the property is purchased at a lower price or has significantly lower operating costs. Given the high price-to-FMR ratio, the investment grade for this ZIP code appears to be low. Investors seeking to purchase properties for Section 8 tenants should carefully evaluate the financial viability of such investments, considering the potential for negative cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like 0BR and 1BR apartments. These units have FMRs of $1630 and $1710 respectively, which might be more financially viable when considering the typical expenses of owning a rental property. 2. **Consider Lower-Priced Properties**: To achieve positive cash flow, investors should look for properties priced below the Zillow median. A 2BR unit priced at around $140,000 would yield a price-to-FMR ratio closer to 5x, potentially making it more feasible for generating a profit while still being affordable for Section 8 voucher holders. 3. **Evaluate Operating Costs**: Before purchasing any property, conduct a thorough analysis of operating costs. Ensure that the total monthly expenses (including mortgage, taxes, insurance, and maintenance) do not exceed the FMR for the respective unit type. This will help avoid negative cash flow situations. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 34741 (Kissimmee, FL) is to **Skip** this market. The high price-to-FMR ratio and the tight occupancy rate suggest that it is difficult to find properties that offer positive cash flow while remaining within the FMR limits. Investors should consider other ZIP codes with more favorable price-to-FMR ratios and less competitive rental markets.

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.