Section 8 Fair Market Rent (FMR) for ZIP 34745 - 2027

FY 2027 Fair Market Rent Rates

The analysis for ZIP code 34745 in Florida reveals some limitations due to incomplete data, particularly regarding market rents and median home values. However, we can still provide insights based on the available information.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 34745 for fiscal year 2024 is set at $1850 per month. This annualizes to $22,200 per unit per year. Given that the median home value is not available, we cannot directly calculate the implied gross yield from this figure. However, if we assume the typical Section 8 occupancy rate and consider the FMR as a proxy for rental income, the gross yield would be derived from the monthly payment multiplied by 12 months.

In the absence of market rent data, it's challenging to compare the Section 8 gross yield to market yields. Typically, the market rent should be higher than the FMR to determine whether Section 8 participation is financially advantageous. Without specific market rent figures, we can only speculate that if market rents were significantly above $1850, participating in the Section 8 program might be less attractive.

The lack of median home value data further complicates the calculation of a cap rate, which is essential for understanding the potential return on investment. A cap rate is calculated by dividing the net operating income (NOI) by the property's value. Since we do not have the NOI or the property value, we cannot provide a precise cap rate. However, the implied gross yield based on the FMR would be the annual rent divided by the assumed property value.

Given the missing renter density percentage and days on market (DOM), we cannot fully assess the likelihood of finding stable tenants. These metrics are crucial for understanding how quickly a property might be rented and the proportion of renters who might qualify for the Section 8 program.

To conclude, while the Section 8 FMR provides a baseline for rental income at $1850 per month, the absence of market rent and median home value data means that a definitive cap rate cannot be established. Investors should consider these factors when deciding whether to participate in the Section 8 program in ZIP 34745. The gross yield based on FMR alone is indicative but requires additional context to be fully informative.

Data Sources: FMR data from HUD (2027).

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.