Location: Orlando-Kissimmee-Sanford, FL | Metro: Orlando-Kissimmee-Sanford, 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 | $1,460 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,160 | $466,291 | 0.46% | F |
| 4BR | $2,520 | $794,919 | 0.32% | F |
| 5BR | $2,923 | $1,154,206 | 0.25% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 34756 provides a critical view into potential investment returns for landlords and small-portfolio investors. Using the annualized Fair Market Rent (FMR) for a two-bedroom apartment at $1710 and the market rent at $3200, we can derive the gross yields against the median home value of $709,174.
First, consider the FMR scenario. At an annual rent of $1710, the gross yield is calculated as follows:
This implies that if a landlord relies solely on Section 8 vouchers, the gross yield would be approximately 0.24%. However, this figure does not account for other income sources such as utility allowances or maintenance reimbursements.
Next, let's examine the market rent scenario. With an annual rent of $3200, the gross yield is:
In this case, the gross yield increases to 0.45%, reflecting the higher rent collected compared to the FMR. This scenario is more favorable for landlords looking to maximize their rental income.
Given the 17.0% renter density in ZIP 34756, it is important to note that not all homes in this area will be rented out. The N/A-day Days on Market (DOM) indicates that there might be challenges in obtaining timely data on how quickly properties are rented out, which could affect cash flow expectations.
The more realistic scenario for landlords considering long-term investments is likely the market rent scenario, yielding 0.45%. While the FMR scenario offers a conservative baseline, the actual rental market dynamics suggest that landlords can achieve higher gross yields by renting at market rates. However, the decision to participate in the Section 8 program should also consider factors beyond just the gross yield, such as tenant stability and government subsidy reliability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.