Section 8 Fair Market Rent (FMR) for ZIP 33125 - 2027

Investment Score for ZIP 33125

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,880
1 Bedroom	$2,040
2 Bedrooms	$2,470
3 Bedrooms	$3,160
4 Bedrooms	$3,610
5 Bedrooms	$4,188
6 Bedrooms	$4,691
7 Bedrooms	$5,066
8 Bedrooms	$5,319

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,040	$214,729	0.95%	C
2BR	$2,470	$380,757	0.65%	D
3BR	$3,160	$561,512	0.56%	F
4BR	$3,610	$642,778	0.56%	F
5BR	$4,188	$728,086	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33125 (Miami, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 33125 is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,420. This figure represents the maximum rent that a Section 8 voucher holder can pay, which is 64.6% of the median household income in the area ($44,979). However, the actual median rent for a two-bedroom unit on Zillow is $3,846.09, which is significantly higher than the FMR. The price-to-FMR ratio of 13.2x indicates that the actual rental prices are far above the FMR, creating a significant constraint for voucher holders. They would likely struggle to find units within their budget, especially given the high occupancy rate of 95.3%, suggesting a limited supply of available units. #### Affordability & Renter Profile ZIP code 33125 has a population of 56,897, with 74.0% of residents being renters. This high percentage of renters suggests a strong demand for rental properties, but the affordability issue is evident. With the median household income at $44,979, many residents may find it challenging to afford housing without assistance. The median rent for a two-bedroom unit is $3,846.09, which is nearly 85.5% of the median household income, indicating a very tight market where most residents rely heavily on subsidies like Section 8 vouchers to afford housing. The occupancy rate of 95.3% further supports the notion that the market is undersupplied relative to demand, making it difficult for renters to find affordable options. #### Investor Angle From an investor perspective, the ZIP code 33125 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2,420, which is well below the actual median rent of $3,846.09. This means that if an investor were to purchase a property and rent it out at the FMR, they would be underpricing the market. However, the high demand for rental properties and the large number of voucher holders could still make such investments attractive. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with rental properties, including mortgage payments, property taxes, insurance, maintenance, and other operating costs. Assuming a mortgage payment of around $1,500 per month (based on a conservative estimate of a 3.5% interest rate on a $384,609 property), property taxes of approximately $250 per month (based on a 1% tax rate), insurance of $100 per month, and maintenance and other costs totaling another $100 per month, the total monthly expenses would be around $1,950. At the FMR of $2,420, there would be a small positive cash flow of $470 per month before accounting for any potential vacancy periods or additional expenses. Given the tight market conditions and high occupancy rates, the risk of vacancies is relatively low, making this ZIP code potentially attractive for investors who are willing to accept lower-than-market rents. However, the investment grade would depend on the specific property and its location within the ZIP code. Properties in desirable neighborhoods or those that offer amenities that attract voucher holders might perform better. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the high demand for rental properties and the significant number of voucher holders, investing in two-bedroom units is a strategic choice. These units are most aligned with the FMR and are likely to be occupied by voucher holders. The FMR for a two-bedroom unit is $2,420, while the actual median rent is $3,846.09, creating a substantial gap that can be leveraged. 2. **Consider Property Location and Amenities**: While the overall market is tight, certain areas within the ZIP code might offer better opportunities. Investing in properties that are in high-demand locations or that have amenities such as parking, security features, or proximity to public transportation could increase the likelihood of attracting tenants and maintaining occupancy. 3. **Understand Local Regulations and Policies**: Miami-Dade County has specific regulations and policies regarding rental properties and Section 8 vouchers. Investors should familiarize themselves with these rules to ensure compliance and maximize the potential benefits of renting to voucher holders. Additionally, understanding local trends and future developments can help predict changes in the rental market. #### Bottom Line For Section 8-focused investors, ZIP code 33125 offers a mixed picture. On one hand, the high demand for rental properties and the large number of voucher holders suggest a stable tenant base. On the other hand, the significant gap between FMR and actual rents means that investors will be underpricing their properties compared to the market. Given the data, the recommendation is to **Buy** with caution. Investors should focus on properties that are well-positioned to attract voucher holders and understand the local market dynamics thoroughly. While the cash flow might be modest, the stability and demand for rental units in this ZIP code make it a viable option for long-term investment. However, investors should be prepared for the possibility of lower-than-market rents and the associated regulatory requirements.

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.