Location: Miami-Miami Beach-Kendall, FL | Metro: Miami-Miami Beach-Kendall, FL HUD Metro FMR Area
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 | $1,610 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,710 |
| 4 Bedrooms | $3,100 |
| 5 Bedrooms | $3,596 |
| 6 Bedrooms | $4,028 |
| 7 Bedrooms | $4,350 |
| 8 Bedrooms | $4,568 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,750 | $405,798 | 0.43% | F |
| 2BR | $2,120 | $345,803 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 33128, located in Miami, Florida, revolves around the significant gap between the Fair Market Rent (FMR) and the market rent. For fiscal year 2024, the FMR stands at $1740, while the actual market rent, measured by the Zillow Rent Index (ZORI), is $2561. This creates a discrepancy of $821 per month, or approximately 32%, between what the government deems as fair rent and the prevailing market rates.
In Miami, where 97.5% of residents are renters and the median home value is $430,573, the disparity between FMR and market rent is particularly pronounced. The median income in the area is $42,722, which underscores the financial challenges many residents face when trying to secure affordable housing.
Given that the FMR is less than the market rent, landlords and small-portfolio investors should be aware of the cost implications of accepting housing voucher tenants. While vouchers can provide a steady stream of rental income, the lower rate compared to the open market means that landlords will earn less per unit than if they rented to market-rate tenants. This could affect overall yields and profitability, especially in a high-cost city like Miami.
To illustrate, consider an apartment complex with 100 units. If all units were rented at the market rate of $2561, the monthly rental revenue would be $256,100. However, if these units were rented under Section 8 at the FMR of $1740, the monthly rental revenue would drop to $174,000. This represents a loss of $82,100 in potential monthly rental income, which is substantial given the high cost of living and property maintenance in Miami.
Moreover, the acceptance of Section 8 tenants often comes with additional administrative burdens and stricter regulations compared to renting to market-rate tenants. Landlords must comply with HUD standards, undergo regular inspections, and ensure that the property meets certain quality criteria. These factors further impact the net yield for landlords and small-portfolio investors.
In conclusion, the Section 8 program in ZIP 33128 presents a clear opportunity but also a challenge. The gap between the FMR and market rent highlights the financial trade-offs involved in renting to voucher tenants. Landlords must weigh the benefits of stable tenancy against the lower rental income and increased regulatory compliance costs.
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.