Location: Monroe County, FL | Metro: Monroe County, FL
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 | $1,560 |
| 1 Bedroom | $1,990 |
| 2 Bedrooms | $2,260 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,990 | $474,818 | 0.42% | F |
| 2BR | $2,260 | $807,626 | 0.28% | F |
| 3BR | $2,980 | $1,420,062 | 0.21% | F |
| 4BR | $2,990 | $2,360,275 | 0.13% | F |
| 5BR | $3,468 | $3,571,725 | 0.1% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 33036, located in the Monroe County, FL metro area, presents a unique opportunity for investors. The HUD Fair Market Rent (FMR) for the area is set at $2,430 for the fiscal year 2026. In comparison, the Zillow Observed Rental Index (ZORI) indicates that the market rent is currently at $4,000. This means that landlords accepting Section 8 vouchers will experience negative cash flow, as the voucher amount is significantly lower than the average market rent.
To further analyze the investment potential, we can look at the median home value in the area, which stands at $1,228,208. Using this figure, we can derive the rent-to-price ratio. With an annualized market rent of $48,000 ($4,000 per month), the rent-to-price ratio is approximately 3.9%, suggesting that rental income alone may not be sufficient to cover mortgage payments and other expenses, especially when considering the lower FMR.
The negative cash flow scenario implies that landlords would need to focus on premium units to make ends meet. However, given the high median home values, the potential for appreciation in property values could offset some of the financial strain. Additionally, the low median Days on Market (DOM) and minimal price-cutting activity (0.2%) indicate a stable market environment where homes are selling quickly without significant price reductions.
The strongest investor angle in this market is likely to be property appreciation rather than cash flow. Given the high median home values and the strong local economy, investors should expect steady increases in property values over time, making long-term investment a viable strategy despite the initial cash flow challenges.
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.