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 | $1,810 |
| 1 Bedroom | $2,320 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,460 |
| 4 Bedrooms | $3,470 |
| 5 Bedrooms | $4,025 |
| 6 Bedrooms | $4,508 |
| 7 Bedrooms | $4,869 |
| 8 Bedrooms | $5,112 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,320 | $582,333 | 0.4% | F |
| 2BR | $2,620 | $868,618 | 0.3% | F |
| 3BR | $3,460 | $1,101,683 | 0.31% | F |
| 4BR | $3,470 | $1,719,500 | 0.2% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 33042, located in Florida, revolves around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $2,910, while the market rent, as indicated by the Zillow Observed Rent Index (ZORI), is $4,688. This creates a gap of $1,778 per month, or approximately 61% below the market rate.
In this context, landlords and small-portfolio investors must understand that accepting housing vouchers does not equate to a yield play. Instead, it represents a scenario where the cost of housing voucher tenants is notably lower than open-market rental rates. The discrepancy is substantial, reflecting a situation where voucher recipients can secure housing at a price far below what other renters might pay.
To anchor this analysis in the local Florida context, consider the following statistics: 17.3% of residents are renters, the median home value is $1,006,549, and the median income is $103,041. These figures suggest a relatively affluent area with a high cost of living. However, the FMR set by HUD is significantly lower than the market rent, which means that landlords who accept Section 8 vouchers will be renting their properties at a discount compared to the open market.
This scenario poses several implications for investors. Firstly, the lower rental income from voucher tenants may reduce potential yields. Secondly, the higher median home values and incomes indicate that the area is likely attractive to higher-paying tenants, potentially making Section 8 rentals less favorable in comparison. Lastly, the gap underscores the importance of understanding the local housing market and the financial implications of participating in the Section 8 program before making investment decisions.
In summary, the gap between FMR and market rent in ZIP 33042 is a critical factor for real estate investors considering the Section 8 program. Accepting housing vouchers means renting at a rate that is $1,778 less than the market average, or 61% below the ZORI. This should be weighed against the broader economic conditions of the area, including the high median home values and incomes, when evaluating the potential returns of such investments.
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.