Location: Miami-Miami Beach-Kendall, FL | Metro: Miami-Miami Beach-Kendall, FL HUD Metro FMR Area
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 | $1,880 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,320 |
| 5 Bedrooms | $3,851 |
| 6 Bedrooms | $4,313 |
| 7 Bedrooms | $4,658 |
| 8 Bedrooms | $4,891 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,880 | $330,014 | 0.57% | F |
| 2BR | $2,270 | $291,990 | 0.78% | D |
| 3BR | $2,900 | $407,380 | 0.71% | D |
| 4BR | $3,320 | $501,282 | 0.66% | D |
| 5BR | $3,851 | $575,903 | 0.67% | D |
U.S. Census Bureau data (2024)
Homestead, particularly the 33033 ZIP code, serves as a strategic gateway between South Miami-Dade’s agricultural roots and the Florida Keys. This area is defined by its sprawling suburban layout and proximity to major logistical hubs, including the Homestead Air Reserve Base, which stands as a critical local employer and economic anchor. The neighborhood blends established residential communities with newer developments, offering a more affordable alternative to the core Miami metro while maintaining access to Everglades National Park and local agricultural attractions.
From a financial perspective, the spread between market rents and HUD payment standards requires careful scrutiny. The HUD Fair Market Rent (FMR) for a 2-bedroom unit in this ZIP is set at $1,860, significantly lagging behind the current market rent of $2,435. This creates a substantial negative gap of $575 per month if you rely solely on voucher limits. With a median home value of $434,632 and properties sitting on the market for a median of 91 days, acquisition costs are moderate, but the high days-on-market figure suggests a slower liquidity environment compared to hotter urban cores.
The tenant pool here is robust, driven by a renter share of 43.6% and a median household income of $69,635. This income level is sufficient to support the market rents above the FMR, indicating a demand for quality housing from the local workforce. Families are drawn to the area for access to specific A-rated schools within the Miami-Dade district and the expanding retail options along the major corridors, suggesting that well-maintained units will see consistent demand.
The Section 8 verdict for 33033 leans toward stability over immediate cash flow. Because the market rent exceeds the 2BR FMR by $575, accepting vouchers strictly at the FY2026 FMR of $2,210 still results in a $225 shortfall against the $2,435 market rate. Investors should target this area for long-term holding and tenant retention rather than maximum yield. The strongest angle is leveraging the high renter population and moderate home prices for appreciation, provided investors can bridge the gap between FMR and actual carrying costs.
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.