Section 8 Fair Market Rent (FMR) for ZIP 34758 - 2027

Investment Score for ZIP 34758

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	$1,780
1 Bedroom	$1,850
2 Bedrooms	$2,100
3 Bedrooms	$2,620
4 Bedrooms	$3,060
5 Bedrooms	$3,550
6 Bedrooms	$3,976
7 Bedrooms	$4,294
8 Bedrooms	$4,509

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,100	$222,354	0.94%	C
3BR	$2,620	$280,532	0.93%	C
4BR	$3,060	$334,486	0.91%	C
5BR	$3,550	$400,510	0.89%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 34758 (Poinciana, FL) #### Section 8 Voucher Dynamics In ZIP code 34758, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,070 for the year 2026. However, the actual rental market shows that the median rent for a two-bedroom unit is significantly lower, at approximately $2,216.42 based on Zillow’s median price-to-rent ratio of 8.9x. This means that the actual median rent for a two-bedroom unit is around $249 per month less than the FMR. The constraints for voucher holders in Poinciana are clear: they can only afford units up to the FMR limit. For a two-bedroom unit, this means that voucher holders can pay up to $2,070, which is 37.4% of the median household income of $66,339. Given the actual median rent is slightly below the FMR, voucher holders should have a reasonable chance of finding suitable housing. However, the gap between FMR and actual rents is narrow, indicating that landlords might be hesitant to accept vouchers if they can charge higher rents. #### Affordability & Renter Profile The renter population in Poinciana makes up 23.7% of the total population, which is relatively low compared to many urban areas but typical for suburban and rural regions. The occupancy rate of 87.8% suggests that the housing stock is well-utilized, indicating a balanced market where neither supply nor demand is overwhelming. Given the median household income of $66,339, it is evident that the majority of residents can afford the median rent for a two-bedroom unit. However, the 37.4% of median income allocated to the FMR for a two-bedroom unit highlights the affordability challenge faced by low-income renters. The FMR for a three-bedroom unit is $2,600, which is 39.2% of the median income, further emphasizing the financial strain on families needing larger units. #### Investor Angle From an investor perspective, the ZIP code 34758 offers a mixed picture. The FMRs provide a guideline for what tenants can afford, but the actual rents are lower, suggesting that there is some flexibility in pricing. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the cost of acquisition and ongoing expenses. Assuming a median home value of $221,642 for a two-bedroom unit, the potential rental income at FMR would be $2,070 per month. This translates to an annual rental income of $24,840. If we consider a conservative estimate of 1% property tax, 1% maintenance, and 1% insurance, the total annual expenses would be approximately $6,649.26. Thus, the net annual income would be around $18,190.74, which is a positive cash flow scenario. However, the investment grade depends on factors such as vacancy rates, competition, and the local economy. With a relatively low renter population percentage and a balanced occupancy rate, the risk of high vacancy rates is mitigated. Still, the narrow gap between FMR and actual rents could make it challenging to compete with non-voucher tenants who might be willing to pay more. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the price-to-FMR ratio, smaller units like one-bedroom apartments are more likely to be rented at or near FMR. The FMR for a one-bedroom unit is $1,820, which is 27.4% of the median income. This is a more manageable percentage for low-income households, making these units more attractive for voucher holders. 2. **Consider Property Tax Rates**: Since property taxes can significantly impact cash flow, it is crucial to understand the local tax environment. If property taxes are higher than the assumed 1%, it could reduce the profitability of properties even when rented at FMR. Investors should research local tax rates and factor them into their financial models. 3. **Diversify Tenant Base**: While focusing on Section 8 vouchers can be lucrative, diversifying the tenant base to include both voucher and non-voucher tenants can help stabilize cash flow. Non-voucher tenants might be willing to pay closer to the actual median rent, which is $249 less than the FMR for a two-bedroom unit. #### Bottom Line For Section 8-focused investors, ZIP code 34758 presents a moderately positive opportunity. The cash flow is positive at FMR, especially for smaller units, and the local market is balanced. However, the narrow gap between FMR and actual rents suggests that competition for tenants could be fierce. Therefore, the recommendation is to **Hold** this ZIP code, particularly for smaller units, while being cautious about the overall economic conditions and property tax rates. Diversifying the tenant mix can also mitigate risks associated with relying solely on voucher tenants.

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.