Section 8 Fair Market Rent (FMR) for ZIP 33126 - 2027

Investment Score for ZIP 33126

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	$2,050
1 Bedroom	$2,230
2 Bedrooms	$2,690
3 Bedrooms	$3,440
4 Bedrooms	$3,930
5 Bedrooms	$4,559
6 Bedrooms	$5,106
7 Bedrooms	$5,514
8 Bedrooms	$5,790

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	$2,230	$198,722	1.12%	B
2BR	$2,690	$284,629	0.95%	C
3BR	$3,440	$527,210	0.65%	D
4BR	$3,930	$621,473	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33126 (Miami, FL) #### Section 8 Voucher Dynamics In ZIP code 33126, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2650 per month. This figure represents 54.6% of the median household income of $58,210, indicating that it is a significant portion of what residents can afford. However, the actual rent for a two-bedroom unit in this area is much higher, with Zillow reporting a median price of $287,855, which translates to a monthly rent of approximately $2398.71 when amortized over a typical mortgage term. The price-to-FMR ratio of 9.1x suggests that actual rents are significantly higher than the FMR, creating a challenging environment for voucher holders. The constraints for voucher holders are evident in the disparity between the FMR and actual rental prices. For instance, a voucher holder would struggle to find a three-bedroom apartment at the FMR of $3400, given that the actual market rent for such units is likely to be much higher. Similarly, four-bedroom apartments priced at $3930 may also be out of reach for many voucher holders due to the high cost of living in Miami. #### Affordability & Renter Profile ZIP code 33126 has a population of 47,307, with 63.5% of residents being renters. This indicates a strong demand for rental properties, particularly among those who rely on housing assistance programs like Section 8. The occupancy rate of 92.9% further supports the notion that the rental market is tight, with very few vacant units available. Given the high percentage of renters and the relatively low vacancy rate, it is clear that the market is undersupplied, leading to higher rents and increased competition for affordable housing. The median household income of $58,210 suggests that many residents are working-class individuals or families who may need financial assistance to afford housing. The high rent-to-income ratio for two-bedroom units (9.1x) underscores the affordability challenges faced by these residents. In such a market, there is a critical need for affordable housing options, especially for those who are eligible for Section 8 vouchers. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. Based on the data provided, the FMR for a two-bedroom unit is $2650, while the actual median price reported by Zillow is $287,855. Assuming a 4.5% cap rate (which is common for multifamily investments in Miami), the expected monthly rental income would be approximately $1078.70. This is significantly lower than the FMR, indicating that investors would likely need to charge more than the FMR to achieve positive cash flow. However, the high price-to-FMR ratio of 9.1x suggests that the market is willing to bear higher rents. If an investor can secure a property at a lower price point, closer to the FMR, they could potentially achieve positive cash flow. For example, if an investor purchases a two-bedroom unit for $265,000 (at the FMR level), the expected monthly rental income would be around $1019.58, still below the FMR but potentially more feasible for cash flow purposes. The investment grade for this ZIP code would be considered moderate to high risk due to the tight market conditions and the potential for regulatory changes affecting Section 8 voucher dynamics. Investors should carefully consider the long-term stability of the rental market and the likelihood of maintaining occupancy rates. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom or studio apartments. These units have FMRs of $2170 and $1990 respectively, which are lower than the median prices for larger units. By targeting these smaller units, investors can better align their rental income with the FMR, thereby increasing the likelihood of attracting Section 8 voucher holders. 2. **Consider Property Value Discounts**: To achieve positive cash flow, investors should look for properties that are discounted from the median market value. For instance, if an investor can purchase a two-bedroom unit for $265,000 instead of the median price of $287,855, they can charge the FMR of $2650 and still achieve a reasonable return on investment. This strategy requires careful negotiation and possibly leveraging alternative financing methods to secure better deals. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 33126 is to **Hold**. While the market is tight and there is a strong demand for rental properties, the high price-to-FMR ratio makes it challenging to achieve positive cash flow without charging above the FMR. Investors should be cautious about entering this market unless they can secure properties at a significant discount or are willing to accept lower returns. The high percentage of renters and the limited supply of affordable units make this ZIP code attractive, but the risks associated with achieving positive cash flow must be carefully weighed.

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.