Section 8 Fair Market Rent (FMR) for ZIP 33016 - 2027

Investment Score for ZIP 33016

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	$2,030
1 Bedroom	$2,210
2 Bedrooms	$2,670
3 Bedrooms	$3,410
4 Bedrooms	$3,900
5 Bedrooms	$4,524
6 Bedrooms	$5,067
7 Bedrooms	$5,472
8 Bedrooms	$5,746

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
1BR	$2,210	$188,658	1.17%	B
2BR	$2,670	$250,142	1.07%	B
3BR	$3,410	$423,105	0.81%	C
4BR	$3,900	$943,090	0.41%	F
5BR	$4,524	$1,205,707	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33016 (Hialeah, FL) #### Section 8 Voucher Dynamics In Hialeah, FL (ZIP code 33016), the Federal Market Rent (FMR) for 2026 is set at $2,610 for a two-bedroom unit. This figure represents 53.6% of the median household income in the area, which stands at $58,479. The FMRs for other bedroom types are as follows: $1,960 for a zero-bedroom unit, $2,140 for a one-bedroom unit, $3,350 for a three-bedroom unit, and $3,870 for a four-bedroom unit. The comparison between FMRs and actual rents is critical for understanding how Section 8 voucher holders can navigate the housing market. According to Zillow, the median price for a two-bedroom home in Hialeah is $250,719. Given that the price-to-FMR ratio is 8.0x, it indicates that the median home price is significantly higher than the rental FMR. This suggests that landlords who accept Section 8 vouchers are likely to face constraints in terms of rent levels they can charge. For instance, a landlord cannot charge more than $2,610 for a two-bedroom unit if they wish to remain within the FMR guidelines. #### Affordability & Renter Profile Hialeah has a population of 45,551, with 51.4% of residents being renters. This high percentage of renters underscores the importance of affordable housing options in the area. The occupancy rate of 97.5% further highlights that there is a strong demand for housing units, making it a relatively tight market. Given the median household income of $58,479 and the fact that 53.6% of this income goes towards a two-bedroom unit's FMR, it is evident that the cost of living is a significant concern for many residents. The affordability challenge is particularly acute for low-income households, who often rely on Section 8 vouchers to find suitable housing. With such a high percentage of renters, the demand for affordable units is likely to remain robust, supporting the need for continued investment in affordable housing. #### Investor Angle From an investor perspective, the key question is whether accepting Section 8 vouchers can be financially viable. The FMR for a two-bedroom unit is $2,610, which is below the median rent level but still represents a significant portion of the median household income. To determine if this ZIP code is cash-flow positive at FMR, we must consider the typical expenses associated with owning and managing rental properties. Assuming a typical vacancy rate of 5%, the effective annual rent for a two-bedroom unit would be approximately $24,789 ($2,610 * 12 months * 95%). However, investors must also account for maintenance costs, property taxes, insurance, and other operational expenses. If these expenses exceed the effective annual rent, then the investment would not be cash-flow positive. Given the high occupancy rate and the significant demand for affordable housing, it is reasonable to assume that maintaining a property at or near the FMR could be profitable. However, the exact profitability would depend on the specific costs associated with the property. In general, the investment grade for this ZIP code appears to be moderate, given the balance between demand and affordability. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the high demand for affordable housing and the fact that the FMR for a two-bedroom unit is $2,610, investors should prioritize developing or acquiring two-bedroom units. These units are most aligned with the needs of low-income families and are likely to have the highest occupancy rates. 2. **Consider Location-Specific Factors**: While the overall market dynamics suggest a tight rental market, investors should carefully evaluate the specific location within Hialeah. Areas closer to public transportation, schools, and employment centers may command slightly higher rents while still remaining within the FMR guidelines. This could provide a slight buffer against operational costs. 3. **Evaluate Property Costs Thoroughly**: Before investing, conduct a thorough evaluation of the total costs involved in owning and managing a rental property. This includes property acquisition costs, renovation expenses, ongoing maintenance, and administrative fees. Ensure that the effective annual rent ($24,789 for a two-bedroom unit) exceeds these costs to ensure a positive cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 33016 is to **Buy**. The high demand for affordable housing, coupled with the tight rental market, provides a solid foundation for investment. However, investors should focus specifically on two-bedroom units, which align closely with the FMR and the needs of the local population. Additionally, careful consideration of location-specific factors and thorough cost evaluations will be crucial to ensuring a positive cash flow and a successful investment. --- This analysis is based solely on the provided data and does not include any external research or assumptions beyond what is explicitly stated.

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.