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 | $1,750 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $2,940 |
| 4 Bedrooms | $3,360 |
| 5 Bedrooms | $3,898 |
| 6 Bedrooms | $4,366 |
| 7 Bedrooms | $4,715 |
| 8 Bedrooms | $4,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,900 | $259,558 | 0.73% | D |
| 2BR | $2,300 | $439,219 | 0.52% | F |
| 3BR | $2,940 | $1,183,730 | 0.25% | F |
| 4BR | $3,360 | $1,751,571 | 0.19% | F |
| 5BR | $3,898 | $2,655,317 | 0.15% | F |
U.S. Census Bureau data (2024)
ZIP 33138, located in the Miami-Miami Beach-Kendall, FL HUD Metro FMR Area, offers a unique opportunity for landlords and small-portfolio investors looking to strategically diversify their investments. This area stands out as a diversifier within a Section 8 portfolio due to its high renter share and median income levels.
The spread between the Fair Market Rent (FMR) of $1920 and the market rent of $2,286 highlights that while Section 8 tenants may pay less than market rates, the difference is manageable. The median home value of $792,333 indicates a robust local economy, which supports higher rents and ensures a steady demand for rental properties. Landlords can balance their portfolios by including properties in ZIP 33138 to cater to both market-rate and Section 8 tenants, thereby stabilizing their overall cash flow.
A key factor supporting the diversification strategy is the 52.2% renter share in the area. This high percentage of renters means a consistent pool of potential tenants, reducing vacancy risks. Additionally, the median income of $75,051 suggests that residents have the financial stability to support a mixed rental market, where some might prefer or require Section 8 assistance while others can afford market rates.
The 0.2% price-cut share and 85-day Days on Market (DOM) further reinforce the idea that this ZIP code is not an anchor but rather a flexible asset. These figures indicate that while landlords might occasionally need to adjust their rental prices, the market is generally quick to absorb new listings, minimizing the risk of prolonged vacancies.
In conclusion, ZIP 33138 serves as an ideal diversifier for a Section 8 portfolio. It offers a blend of manageable FMR spreads, a strong local economy, and a high renter share, making it a valuable addition to any investment strategy aimed at balancing risk and reward.
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.