Section 8 Fair Market Rent (FMR) for ZIP 34786 - 2027

Investment Score for ZIP 34786

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	$2,280
1 Bedroom	$2,370
2 Bedrooms	$2,690
3 Bedrooms	$3,360
4 Bedrooms	$3,920
5 Bedrooms	$4,547
6 Bedrooms	$5,093
7 Bedrooms	$5,500
8 Bedrooms	$5,775

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
2BR	$2,690	$333,614	0.81%	C
3BR	$3,360	$439,182	0.77%	D
4BR	$3,920	$760,492	0.52%	F
5BR	$4,547	$1,386,659	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 34786 (Windermere, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 34786 is set by HUD for 2026. For a two-bedroom unit, the FMR is $2760 per month. However, the Zillow median price for a two-bedroom home in Windermere is $335,050, which translates to a price-to-FMR ratio of 10.1x. This means that the typical market rent for a two-bedroom unit is likely much higher than the FMR. In fact, if we assume a conservative rental yield of 5%, the expected market rent would be around $1400 per month, significantly above the FMR. This creates a challenging situation for Section 8 voucher holders. The maximum allowable rent under the voucher program is capped at the FMR, which is $2760 for a two-bedroom unit. Given that the actual market rent is likely higher, voucher holders face significant constraints in finding suitable housing within their budget. They may have to look outside the ZIP code for more affordable options, or they might need to accept lower-quality units that meet the FMR criteria. #### Affordability & Renter Profile Windermere has a median household income of $134,214, which places it in a high-income bracket. With 28.5% of the population being renters, there is a notable demand for rental properties. However, the occupancy rate of 86.4% suggests that the market is relatively tight, with a slight surplus of available units. Given the high median income, the typical renter profile in Windermere is likely to be affluent individuals or families who can afford higher rents. The fact that 2BR units cost 24.7% of the median income indicates that even without vouchers, renting is a significant financial commitment for residents. This further emphasizes the challenge faced by Section 8 voucher holders, who must find units that are both affordable and acceptable according to HUD standards. #### Investor Angle From an investor perspective, the ZIP code 34786 presents mixed opportunities. The FMR for a two-bedroom unit is $2760, but the actual market rent is expected to be much higher. If an investor can secure a property below the Zillow median price of $335,050 and achieve a rental yield of 5%, the monthly rent would still be around $1400, which is well below the FMR. This implies that the investor could potentially charge higher rents and still remain competitive in the market. However, focusing solely on Section 8 tenants would limit the potential rental income to the FMR. To determine if this is cash-flow positive, we need to consider the costs associated with owning and maintaining a property. Assuming a mortgage payment of $1500 per month (based on a 4% interest rate and a 30-year term), property taxes of $1000 per year (or about $83 per month), insurance of $500 per year (or about $42 per month), and maintenance costs of $100 per month, the total monthly expenses would be approximately $2525. At the FMR of $2760, the net cash flow would be $235 per month, indicating a positive cash flow but with slim margins. In terms of investment grade, the ZIP code 34786 appears to be a moderate risk due to its high-income demographic and relatively tight rental market. However, the reliance on Section 8 vouchers would introduce additional administrative complexities and potential delays in lease renewals, which could affect the overall investment grade. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should consider targeting one-bedroom or smaller units, where the FMR is lower ($2420). This would provide a better margin for cash flow, especially if the market rent for these units is also proportionally lower than for two-bedroom units. 2. **Diversify Tenant Base**: While Section 8 vouchers offer a stable tenant base, diversifying the portfolio to include market-rate tenants could improve overall profitability. For instance, charging the market rate of $1400 for a two-bedroom unit would result in a higher net cash flow compared to relying solely on FMR rates. 3. **Consider Property Upgrades**: Given the high-income demographic, investing in property upgrades could increase the market value and attract higher-paying tenants. This could include improvements such as modern kitchens, updated bathrooms, or energy-efficient appliances, which could justify higher rents. #### Bottom Line For Section 8-focused investors, the ZIP code 34786 presents a challenging environment due to the high median income and tight rental market. While the FMR provides a stable rent floor, the limited number of units that can be rented at this rate makes it a less attractive option for maximizing returns. Therefore, the recommendation for investors is to **Skip** this ZIP code unless they can secure properties at significantly below market value and are willing to manage the administrative complexities of Section 8 vouchers. Instead, they might want to explore areas with a higher percentage of renters or lower median incomes where the FMR represents a larger portion of the market rent.

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.