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 | $2,030 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $3,000 |
| 4 Bedrooms | $3,500 |
| 5 Bedrooms | $4,060 |
| 6 Bedrooms | $4,547 |
| 7 Bedrooms | $4,911 |
| 8 Bedrooms | $5,157 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,000 | $499,943 | 0.6% | D |
| 4BR | $3,500 | $703,729 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 34760 provides a detailed look into the potential returns for landlords and small-portfolio investors considering participation in the program. The Fair Market Rent (FMR) for a two-bedroom property in this area, as determined by HUD for FY 2024, is set at $2240 per year. This translates to an annualized rent of approximately $186.67 per month. Using the median home value of $510,371 in the area, the implied gross yield for a Section 8 property would be about 0.45%, calculated as ($2240 / $510,371) * 100.
In contrast, the Zillow Observed Rent Index (ZORI) for a two-bedroom property in ZIP 34760 is $1,931 per month. Annualizing this figure gives us a total annual market rent of $23,172. When compared to the median home value, this scenario yields a much higher gross return of approximately 4.54%. This is calculated as ($23,172 / $510,371) * 100.
The stark difference between these two yields highlights the financial implications of participating in the Section 8 program versus renting at market rates. With a 0.0% renter density and a non-available (N/A) days on market (DOM), it's evident that the local rental market is either underdeveloped or heavily skewed away from rental properties, particularly those relying on government subsidies. Given these conditions, it's unlikely that landlords in ZIP 34760 will find many tenants willing to participate in the Section 8 program, making the higher market rent scenario more realistic for most investors.
Investors should carefully consider these gross yields when deciding whether to enter the Section 8 program or seek market-rate tenants. While the Section 8 program offers stability and a guaranteed tenant through government subsidy, the lower gross yield suggests a slower return on investment compared to renting at market rates. However, the decision ultimately depends on individual risk tolerance and investment goals. For those prioritizing long-term, stable cash flow, Section 8 might still present an attractive option despite the lower initial yield.
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.