Section 8 Fair Market Rent (FMR) for ZIP 34748 - 2027

Investment Score for ZIP 34748

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	$1,180
1 Bedroom	$1,220
2 Bedrooms	$1,390
3 Bedrooms	$1,740
4 Bedrooms	$2,090
5 Bedrooms	$2,424
6 Bedrooms	$2,715
7 Bedrooms	$2,932
8 Bedrooms	$3,079

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	$1,220	$88,249	1.38%	A
2BR	$1,390	$214,785	0.65%	D
3BR	$1,740	$289,306	0.6%	D
4BR	$2,090	$346,912	0.6%	D
5BR	$2,424	$398,373	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 34748 (Leesburg, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for 2-bedroom units in Leesburg, FL (ZIP 34748), is set at $1520 per month for 2026. This amount represents 31.3% of the median household income of $58,192 in the area. However, the actual rental market is significantly higher, with Zillow reporting a median price for a 2-bedroom unit at $217,912. The price-to-FMR ratio of 11.9x indicates that the actual market rent is nearly twelve times the FMR. For Section 8 voucher holders, this means that they can only afford units that are priced at or below the FMR, which is far below the median market rent. Consequently, voucher holders face severe constraints in finding suitable housing within their budget, particularly for larger units like 3BR ($1920) and 4BR ($2320). #### Affordability & Renter Profile In Leesburg, approximately 24.9% of the population are renters, indicating a significant portion of the community relies on rental housing. Given the occupancy rate of 83.7%, it suggests that the rental market is relatively tight, with most available units being occupied. The high price-to-FMR ratio implies that the market is not very affordable for low-income renters, especially those who rely on Section 8 vouchers. The median household income of $58,192 is relatively modest, making it challenging for residents to find affordable housing without assistance. The market dynamics suggest that there is a need for more affordable units to meet the demand of low-income renters. #### Investor Angle From an investor perspective, the ZIP code 34748 presents a mixed scenario when considering cash flow and investment grade. The FMR for 2BR units is $1520, but the actual median market rent is much higher at $217,912. If an investor were to purchase a 2BR unit at the median market price and rent it out at the FMR, the monthly rent would be significantly lower than the mortgage payment, leading to negative cash flow. Therefore, investing in properties solely based on FMR would likely result in financial losses unless the property can be rented out at a higher rate. However, the high price-to-FMR ratio also suggests that there is potential for investors to capitalize on the premium market rents if they can secure tenants willing to pay above the FMR. This could include non-voucher tenants or those with higher incomes who do not require government subsidies. In terms of investment grade, the tight rental market and high demand for housing indicate a stable investment environment, albeit with limited opportunities for Section 8-focused investments due to the mismatch between FMR and actual market rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as 0BR and 1BR apartments. These units have FMRs of $1270 and $1340, respectively, which are closer to the actual market rents for these sizes. Smaller units are often more affordable and can attract a broader range of tenants, including those who might not qualify for Section 8 vouchers but still prefer lower-cost housing options. 2. **Consider Non-Voucher Tenants**: While the FMR is crucial for Section 8 voucher holders, the high median market rent suggests that there is a substantial number of non-voucher tenants who can afford higher rents. Investors might want to explore renting to this demographic, which could provide better cash flow and returns. This approach would involve setting rents above the FMR but still within the range of affordability for the local population. 3. **Develop Affordable Housing**: Given the significant gap between FMR and actual market rents, there is a clear opportunity for developers to create more affordable housing units. By building or renovating properties specifically designed to cater to low-income renters, developers can fill a critical need in the market while potentially qualifying for tax incentives and other benefits associated with affordable housing projects. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the tight rental market make it difficult to find properties that can be rented out at the FMR and still generate positive cash flow. Instead, investors should look for areas where the FMR is closer to the actual market rents, or consider developing affordable housing units to serve the local low-income population effectively. For general investors looking to capitalize on the premium market rents, there is potential, but it comes with the challenge of securing tenants willing to pay above the FMR.

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.