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 | $2,120 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,780 |
| 3 Bedrooms | $3,550 |
| 4 Bedrooms | $4,060 |
| 5 Bedrooms | $4,710 |
| 6 Bedrooms | $5,275 |
| 7 Bedrooms | $5,697 |
| 8 Bedrooms | $5,982 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,300 | $400,832 | 0.57% | F |
| 2BR | $2,780 | $582,790 | 0.48% | F |
| 3BR | $3,550 | $979,287 | 0.36% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering ZIP 33130 in Miami, FL, often raise several key concerns regarding the feasibility of investing in properties through the Section 8 program. Let's address these objections head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $2,210 (for ZIP 33130 in fiscal year 2024) cover the mortgage on a $509,055 home?
The FMR of $2,210 per month is a crucial figure for determining rental rates under the Section 8 program. To assess whether this amount can cover the mortgage, we need to calculate the monthly mortgage payment for a $509,055 property. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the principal and interest payment would be approximately $2,700 per month. This means that the FMR does not fully cover the mortgage payment. However, it's important to note that investors can also benefit from other income streams such as security deposits, which can help offset the shortfall. Additionally, the FMR is adjusted annually and could potentially increase to better cover mortgage payments in the future.
Objection 2: Is there enough renter demand at 83.2%?
The occupancy rate of 83.2% indicates that there is a reasonable level of demand for rental properties in ZIP 33130. While this rate is not perfect, it suggests that most units are occupied, which is a positive sign for maintaining steady cash flow. High occupancy rates also imply that there is competition among renters, which can be advantageous for landlords who want to ensure their units are filled. It's worth noting that demand can fluctuate based on local economic conditions and job availability, so monitoring these factors is essential.
Objection 3: Will vouchers keep pace with market rents of $3,149?
The FMR of $2,210 is significantly lower than the market rent of $3,149. This gap highlights a potential challenge for landlords relying solely on Section 8 vouchers. However, the voucher system is designed to provide a subsidy that covers the difference between the tenant's contribution and the FMR. In practice, this means that while the FMR might not match market rents, the combination of the tenant's portion and the voucher should still make the investment viable. The critical point here is the reliability and timely disbursement of the voucher payments. If these are consistent, landlords can manage the financials effectively despite the disparity between FMR and market rents.
In summary, while the data presents some challenges, particularly with covering mortgage payments and keeping up with market rents, the overall picture in ZIP 33130 remains favorable for Section 8 investments due to strong occupancy rates and the structured nature of the voucher system.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.