Section 8 Fair Market Rent (FMR) for ZIP 33021 - 2027

Investment Score for ZIP 33021

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	$1,820
1 Bedroom	$1,990
2 Bedrooms	$2,440
3 Bedrooms	$3,370
4 Bedrooms	$3,990
5 Bedrooms	$4,628
6 Bedrooms	$5,183
7 Bedrooms	$5,598
8 Bedrooms	$5,878

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	$1,990	$136,815	1.45%	A
2BR	$2,440	$254,961	0.96%	C
3BR	$3,370	$596,340	0.57%	F
4BR	$3,990	$816,377	0.49%	F
5BR	$4,628	$1,166,236	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33021 (Hollywood, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 33021 is set by HUD for 2026. The FMRs are as follows: - 0BR: $2020 - 1BR: $2210 - 2BR: $2710 - 3BR: $3740 - 4BR: $4430 To understand how these FMRs compare to actual rents, we need to consider the typical rental prices in the area. For a 2BR unit, the Zillow median price is $256,202, which translates into a monthly rent of approximately $2135 if we assume a 1% annual rent-to-price ratio. This means that the actual rent ($2135) is slightly below the FMR ($2710). However, it’s important to note that the FMR is an upper limit, and landlords who accept Section 8 vouchers must ensure their rents do not exceed this amount. Therefore, voucher holders face a constraint where they can only afford units up to the FMR, which could be challenging given the actual rental prices in the market. #### Affordability & Renter Profile ZIP code 33021 has a population of 48,464, with 32.1% being renters. The median household income is $71,318, and the FMR for a 2BR unit represents 45.6% of this income. This indicates that renting a 2BR unit is relatively affordable for the average household, but still presents a significant portion of their income. Given the occupancy rate of 90%, it suggests that the market is fairly tight, with limited availability of rental properties. This tightness could make it difficult for voucher holders to find suitable housing within the FMR limits, especially since actual rents are close to the FMR. #### Investor Angle From an investor perspective, the cash flow potential of accepting Section 8 vouchers needs to be analyzed. The FMR for a 2BR unit is $2710, while the actual rent based on Zillow data is around $2135. If an investor were to accept a Section 8 voucher, they would receive the full FMR amount of $2710 per month. This would result in a positive cash flow of $575 per month above the typical market rent. However, the investment grade also depends on other factors such as property management costs, vacancy rates, and maintenance expenses. Assuming a conservative estimate of 10% in property management and maintenance costs, the net cash flow would be around $517.50 per month. This positive cash flow makes the ZIP code attractive for investors focusing on Section 8 vouchers, as they can potentially earn more than the market rent while ensuring steady occupancy. #### Specific Actionable Insights 1. **Focus on 2BR Units**: Given that the FMR for a 2BR unit is $2710, which is significantly higher than the typical market rent of $2135, investors should focus on acquiring 2BR properties. These units offer the best opportunity for positive cash flow when accepting Section 8 vouchers. 2. **Consider 3BR and 4BR Units**: While the FMR for 3BR and 4BR units is higher ($3740 and $4430 respectively), these units might be less affordable for the average household. However, they could attract larger families or those willing to pay more, providing additional opportunities for investors. 3. **Evaluate Property Management Costs**: Before investing, thoroughly evaluate the costs associated with property management and maintenance. These expenses can eat into the positive cash flow, so finding efficient and cost-effective solutions will be crucial for maximizing returns. #### Bottom Line For Section 8-focused investors, ZIP code 33021 offers a favorable environment. The positive cash flow potential, especially for 2BR units, combined with the high occupancy rate, makes it a good buy. Investors should prioritize properties that fall within the FMR limits and have a strong demand from both voucher holders and regular tenants. Given the tight market conditions and the relative affordability of renting compared to the median income, holding onto properties in this ZIP code is likely to be profitable in the long term. Therefore, the recommendation is to **buy** properties in ZIP 33021 with a focus on 2BR units to maximize cash flow benefits from Section 8 vouchers.

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.