Section 8 Fair Market Rent (FMR) for ZIP 33142 - 2027

Investment Score for ZIP 33142

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	$1,620
1 Bedroom	$1,760
2 Bedrooms	$2,130
3 Bedrooms	$2,720
4 Bedrooms	$3,110
5 Bedrooms	$3,608
6 Bedrooms	$4,041
7 Bedrooms	$4,364
8 Bedrooms	$4,582

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	$1,760	$283,851	0.62%	D
2BR	$2,130	$369,539	0.58%	F
3BR	$2,720	$445,323	0.61%	D
4BR	$3,110	$495,692	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33142 (Brownsville, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 33142 is set by HUD for 2026, with the following rates: - 0BR: $1570 - 1BR: $1710 - 2BR: $2090 (which is 63.3% of the median household income) - 3BR: $2680 - 4BR: $3100 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it's important to understand how these FMRs compare to actual rents in the area. According to Zillow, the median price for a 2BR home in Brownsville is $367,950. The price-to-FMR ratio for a 2BR unit is 14.7x, which means the actual rental cost could be significantly higher than the FMR. This implies that voucher holders face significant constraints in finding affordable housing, as many landlords may not accept vouchers due to the high disparity between the FMR and the market rental rates. #### Affordability & Renter Profile ZIP code 33142 has a population of 58,908, with 70.8% of residents being renters. This indicates a strong demand for rental properties. The occupancy rate stands at 90.8%, suggesting that the market is relatively tight, with most units occupied. Given the median household income of $39,608, the majority of renters likely fall into lower-income brackets. The fact that the FMR for a 2BR unit is only 63.3% of the median income highlights the affordability challenges faced by many residents. With such a high percentage of renters and a relatively low vacancy rate, the market appears to be undersupplied, especially for those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the key question is whether the FMRs allow for cash flow-positive investments. Considering the Zillow median price of $367,950 for a 2BR home, and assuming a typical mortgage rate of around 4.5% for a 30-year fixed-rate loan, the monthly mortgage payment would be approximately $1,790. Adding property taxes, insurance, maintenance, and other expenses, the total cost could easily exceed the FMR of $2090 for a 2BR unit. Therefore, relying solely on FMR rates would likely result in negative cash flow for investors. Given the high price-to-FMR ratio, the investment grade for this ZIP code is low for Section 8-focused investors. The market dynamics suggest that there is a limited pool of tenants who can afford the rents based on their vouchers, making it challenging to find stable, long-term tenants who can cover the costs associated with owning and maintaining rental properties. #### Specific Actionable Insights 1. **Target Larger Units**: Investors should consider targeting larger units (3BR or 4BR) where the FMR is higher. For instance, the FMR for a 4BR unit is $3100, which is closer to the potential rental income in this market. This could provide better cash flow opportunities despite the tight market conditions. 2. **Seek Non-Section 8 Tenants**: Given the high price-to-FMR ratio, it might be more financially viable to seek tenants who do not rely solely on Section 8 vouchers. These tenants could potentially pay market rates, which would be much higher than the FMRs and thus improve the overall profitability of the investment. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code. The high price-to-FMR ratio and the tight market conditions make it difficult to achieve positive cash flow using Section 8 vouchers alone. While there is a strong demand for rental properties, the financial constraints imposed by the FMRs limit the feasibility of investing in this area purely for Section 8 tenants. Instead, investors should look for areas with a lower price-to-FMR ratio or focus on attracting non-voucher tenants who can pay market rates.

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.