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 | $1,730 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,040 | $270,169 | 0.76% | D |
| 3BR | $2,550 | $328,707 | 0.78% | D |
| 4BR | $2,970 | $559,172 | 0.53% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 34797, located in Yalaha, FL, centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. As of fiscal year 2024, the FMR for ZIP 34797 is set at $1720. However, the market rent is currently unavailable, which makes it challenging to provide a precise comparison. Despite this lack of data, it's important to understand how the FMR affects rental investments in this area.
In Yalaha, only 3.2% of residents are renters, indicating a primarily owner-occupied market. The median home value stands at $343,595, while the median household income is $130,227. Given these figures, landlords should be aware that the FMR is significantly lower than what might be considered a fair market rate based on the area's economic indicators.
If the FMR were higher than the market rent, it would indicate a yield play scenario where voucher tenants could potentially generate higher returns due to the government subsidy. However, since the FMR is likely lower than the market rent, landlords accepting Section 8 vouchers must consider the cost of housing voucher tenants below open-market rates.
This gap means landlords might have to accept a lower net income per unit, which can impact overall portfolio yields. Additionally, the administrative burden of managing Section 8 properties can be substantial, including compliance with HUD regulations and potential delays in receiving rental payments.
To make informed decisions, landlords and small-portfolio investors should closely monitor local rental trends and compare them against the FMR. This will help in assessing whether the financial benefits of Section 8 tenancy outweigh the potential drawbacks in terms of income and management complexity.
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.