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 |
|---|---|---|---|---|
| 2BR | $2,260 | $742,487 | 0.3% | F |
| 3BR | $2,980 | $1,189,945 | 0.25% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 33051, located in Key Colony Beach, FL, within the Monroe County, FL metro area, reveals several key points that are crucial for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $2,230, while the current market rent based on Census ACS data stands at $1,929. This indicates that there is a gap between what the government deems as fair and the actual market conditions. Landlords can expect to charge below the FMR to remain competitive, which may affect their profitability if they aim to match the FMR.
The second point concerns the affordability of acquiring properties. With a median home value of $845,154, purchasing homes in this area is costly. However, the lack of data on days on market (DOM) and the low percentage of listings that have experienced price cuts (0.2%) suggest that the market is stable and that homes do not typically linger on the market or require significant discounts to sell. This stability can be reassuring for potential investors.
Lastly, we examine the tenant demand. The ZIP code has a population of 511, with 31.9% being renters. Given the small size of the population, the rental market is limited. However, the relatively high percentage of renters indicates a steady demand for rental properties. This could be beneficial for landlords who can cater to the specific needs of tenants in this exclusive location.
In summary, the rent math does not fully align with market realities, making it challenging to achieve the FMR. Property acquisition is expensive but the market shows signs of stability. Tenant demand is modest due to the small population size but steady among those who rent. For investors willing to accept these conditions, the ZIP offers opportunities, especially considering the strong rental percentage despite the limited overall population.
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.