Section 8 Fair Market Rent (FMR) for ZIP 33018 - 2027

Investment Score for ZIP 33018

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	$2,160
1 Bedroom	$2,340
2 Bedrooms	$2,830
3 Bedrooms	$3,620
4 Bedrooms	$4,140
5 Bedrooms	$4,802
6 Bedrooms	$5,378
7 Bedrooms	$5,808
8 Bedrooms	$6,098

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	$2,340	$232,950	1%	B
2BR	$2,830	$291,096	0.97%	C
3BR	$3,620	$523,179	0.69%	D
4BR	$4,140	$691,790	0.6%	F
5BR	$4,802	$920,948	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33018 (Hialeah, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 33018, as per the 2026 figures, is set at $2710 for a two-bedroom unit. This represents 36.3% of the median household income in Hialeah, which is $89,639. The FMR is designed to reflect the average rent paid by tenants in the area, but it often falls short of the actual rental prices. For instance, the Zillow median price for a two-bedroom home in this ZIP code is $292,794, indicating that the price-to-FMR ratio is approximately 9.0x. This suggests that actual rents in the market are significantly higher than the FMR, creating a challenge for voucher holders who might struggle to find units that accept their vouchers at the stipulated rates. Given that the FMR for a two-bedroom unit is $2710, landlords who wish to participate in the Section 8 program must ensure their rental prices do not exceed this amount. However, the high price-to-FMR ratio implies that many landlords may be reluctant to accept Section 8 vouchers due to the lower returns compared to market rents. This dynamic can lead to a shortage of available units for voucher holders, thereby constraining their housing options. #### Affordability & Renter Profile In ZIP code 33018, 28.7% of households are renters, indicating a significant portion of the population relies on rental housing. With a median household income of $89,639, the affordability of rental units becomes a critical issue. The occupancy rate of 98.8% suggests that the rental market is tight, with very few vacant units available. This tightness can drive up rental prices, making it even harder for low-income households to find affordable housing. Given that the FMR for a two-bedroom unit is only 36.3% of the median income, the majority of residents should theoretically be able to afford market rents without assistance. However, the high price-to-FMR ratio indicates that actual rents are well above what the FMR suggests, putting pressure on renters to find units that fit their budget. The tight market conditions mean that there is likely strong competition for rental units, particularly those that are more affordable. #### Investor Angle From an investor’s perspective, the ZIP code 33018 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2710, which is significantly lower than the median market rent. If an investor were to purchase a property at the Zillow median price of $292,794 and rent it out at the FMR, they would need to carefully manage costs to achieve positive cash flow. To determine if this ZIP code is cash-flow positive at FMR, we need to consider typical expenses such as mortgage payments, maintenance, insurance, and property taxes. Assuming a 30-year fixed-rate mortgage at 4.5%, the monthly payment on a $292,794 property would be around $1460. Adding typical maintenance costs ($150), insurance ($100), and property taxes ($250), the total monthly expenses would be approximately $1960. At an FMR of $2710, the net cash flow would be about $750 per month, suggesting that the ZIP code could be cash-flow positive for investors willing to operate at the FMR. However, the investment grade is influenced by the tight market conditions and the high price-to-FMR ratio. While there is potential for positive cash flow, the risk of vacancy and the challenge of finding tenants willing to pay the FMR must also be considered. Additionally, the high competition for rental units means that investors must be prepared to offer competitive amenities and services to attract tenants. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should focus on acquiring properties where the rent can be set below the FMR to attract voucher holders. For example, a two-bedroom unit rented at $2500 would still be attractive to voucher holders and provide a margin for operating costs. 2. **Consider Multi-Family Properties**: Given the high price-to-FMR ratio, multi-family properties may offer better returns. A three-bedroom unit with an FMR of $3480 could potentially be rented at a slightly higher rate to non-voucher tenants while still being affordable to voucher holders. This strategy allows investors to diversify their tenant base and mitigate risks associated with a single-unit property. #### Bottom Line For Section 8-focused investors, the ZIP code 33018 presents a mixed picture. While there is potential for positive cash flow, the high price-to-FMR ratio and tight market conditions suggest that finding properties that fit within the FMR parameters will be challenging. Therefore, the recommendation is to **Hold** investments in this ZIP code unless you can acquire properties at a discount or have a strategy to attract a mix of voucher and non-voucher tenants. The key to success will be managing costs effectively and offering competitive units within the FMR range.

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.