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 | $1,740 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,520 |
| 3 Bedrooms | $3,330 |
| 4 Bedrooms | $3,340 |
| 5 Bedrooms | $3,874 |
| 6 Bedrooms | $4,339 |
| 7 Bedrooms | $4,686 |
| 8 Bedrooms | $4,920 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,230 | $578,260 | 0.39% | F |
| 2BR | $2,520 | $802,361 | 0.31% | F |
| 3BR | $3,330 | $1,078,087 | 0.31% | F |
| 4BR | $3,340 | $1,699,251 | 0.2% | F |
| 5BR | $3,874 | $2,841,758 | 0.14% | F |
U.S. Census Bureau data (2024)
ZIP 33040, located in Key West, FL, represents a unique opportunity within a Section 8 portfolio strategy. This area serves primarily as a cash-flow anchor due to its significant spread between the Fair Market Rent (FMR) and the local market rent. For fiscal year 2026, the FMR for the Monroe County, FL metro area is set at $2,800, while the market rent in ZIP 33040 stands at $3,663. This difference allows landlords to maintain positive cash flow when participating in the Section 8 program, despite the lower rents mandated by the government.
The median home value in ZIP 33040 is $959,835, indicating a high-end real estate market. Despite recent declines in home values, down 4.4% from the previous year according to Zillow, the market remains robust. Homes in this ZIP code sell for a median price of $1.1 million, with an average of 104 days on the market, slightly higher than the 91 days seen last year. These factors suggest that the real estate market is stable but not necessarily appreciating rapidly, making it less of an appreciation play.
ZIP 33040 also has a substantial renter share of 49.8%, with a median income of $86,586. While these figures indicate a diverse tenant base, the primary focus for landlords should be on the cash-flow anchor potential of this ZIP code. The high market rent relative to the FMR ensures that landlords can cover their mortgage payments and maintenance costs effectively, even when renting to tenants through the Section 8 program.
To summarize, ZIP 33040 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Landlords can leverage the spread between the FMR and market rent to ensure they receive sufficient income to offset the costs of property ownership. This makes it an ideal choice for those looking to stabilize their investment portfolio and generate reliable cash flow from their real estate holdings.
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.