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 | $1,400 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,450 | $178,546 | 0.81% | C |
| 2BR | $1,650 | $235,714 | 0.7% | D |
| 3BR | $2,060 | $318,894 | 0.65% | D |
| 4BR | $2,410 | $385,599 | 0.63% | D |
| 5BR | $2,796 | $483,918 | 0.58% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 34769, which encompasses parts of Saint Cloud, FL, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1530, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2010. This means that the FMR is $480 lower than the market rent, representing a 23.9% discount.
In this context, landlords and small-portfolio investors should be aware that accepting Section 8 vouchers can result in renting units below the open-market rate. The FMR is set by the U.S. Department of Housing and Urban Development (HUD) to reflect the average market rent for decent, safe, and sanitary housing. However, in Saint Cloud, FL, where the median home value is $315,867 and the median income is $67,148, the discrepancy between the FMR and the market rent suggests that landlords could potentially earn more by renting to non-voucher tenants.
The 33.1% rental rate in Saint Cloud indicates a substantial portion of the population relies on rental housing, creating a demand for affordable options. Yet, the disparity between the FMR and the actual market rent underscores the financial implications for landlords who choose to participate in the Section 8 program. By renting at the FMR rate, landlords are effectively leaving money on the table compared to the open-market rates, which could impact their overall yield and profitability.
For investors considering the Section 8 market, it's crucial to understand that while there is a guaranteed income stream from the government, the rates are set below the prevailing market conditions. This makes the decision to accept vouchers a strategic one, balancing the stability of government-backed payments against the potential for higher yields through open-market rentals. The gap of $480 per unit, or 23.9% of the market rent, highlights the trade-off involved in choosing to rent to voucher holders in this area.
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.