Section 8 Fair Market Rent (FMR) for ZIP 33020 - 2027

Investment Score for ZIP 33020

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	$1,740
1 Bedroom	$1,880
2 Bedrooms	$2,300
3 Bedrooms	$3,140
4 Bedrooms	$3,630
5 Bedrooms	$4,211
6 Bedrooms	$4,716
7 Bedrooms	$5,093
8 Bedrooms	$5,348

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	$1,880	$136,653	1.38%	A
2BR	$2,300	$352,672	0.65%	D
3BR	$3,140	$500,636	0.63%	D
4BR	$3,630	$584,033	0.62%	D
5BR	$4,211	$746,409	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33020 (Hollywood, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 33020, as determined by HUD for 2026, is set at $2380 for a two-bedroom unit. This represents 50.6% of the median household income in the area, which is $56,473. The FMR is intended to reflect the average rent that voucher holders can afford, but it often falls short of actual market rents. For instance, the Zillow median price for a two-bedroom home in 33020 is $351,483, which translates to a monthly mortgage payment of approximately $1750, assuming a 30-year fixed-rate mortgage at a 4.5% interest rate and a 20% down payment. However, the actual rental market is significantly higher, with a price-to-FMR ratio of 12.3x. This means that landlords would need to charge around $29,214 annually ($2,434.50 per month) to break even on the mortgage payment, which is well above the $2380 FMR. Therefore, voucher holders face significant constraints in finding affordable housing within the FMR limits, especially for larger units like three or four bedrooms where the FMR is $3280 and $3890 respectively. #### Affordability & Renter Profile ZIP code 33020 has a high renter population of 63.5%, indicating a strong demand for rental properties. With an occupancy rate of 88.5%, the market is relatively tight, suggesting that there is little excess supply of rental units. The median household income of $56,473 indicates that many residents are middle-income earners who rely heavily on rental assistance programs like Section 8 to find suitable housing. Given the high renter percentage and limited vacancy, the market is likely to remain competitive, making it challenging for low-income renters to secure housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 33020 offers a mixed picture when considering the FMR. While the FMR for a two-bedroom unit is $2380, the actual market rent is much higher, with the price-to-FMR ratio at 12.3x. This suggests that landlords who accept Section 8 vouchers will have difficulty covering their mortgage payments and other expenses solely through the FMR. The cash flow potential for investors accepting Section 8 vouchers is therefore negative unless they can find ways to reduce costs or increase revenue. In terms of investment grade, given the high price-to-FMR ratio and the tight rental market, the ZIP code 33020 would be considered a speculative investment for those focusing on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as one-bedroom apartments, where the FMR is $1940. Although still below market rates, these units might be easier to rent out to voucher holders due to the lower rent threshold. Additionally, the demand for smaller units tends to be higher in densely populated areas like Hollywood, FL. 2. **Rent Stabilization Policies**: Given the high price-to-FMR ratio, investors should monitor local rent stabilization policies. If the city implements measures to control rent increases, it could make the FMR more aligned with actual market rents, improving the cash flow for Section 8-focused investments. 3. **Alternative Financing Options**: Since the FMR is significantly lower than market rents, investors might explore alternative financing options that offer lower interest rates or longer amortization periods to reduce monthly mortgage payments. This could help bridge the gap between FMR and mortgage costs, making Section 8 properties more financially viable. #### Bottom Line For investors focused specifically on Section 8 vouchers, the recommendation for ZIP code 33020 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow. Additionally, the constraints faced by voucher holders in finding affordable housing suggest that there will be limited demand for properties priced strictly within the FMR guidelines. Investors looking for more stable returns might want to consider other ZIP codes with better alignment between FMR and market rents.

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.