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 | $1,910 |
| 1 Bedroom | $2,080 |
| 2 Bedrooms | $2,510 |
| 3 Bedrooms | $3,210 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,080 | $223,084 | 0.93% | C |
| 2BR | $2,510 | $535,961 | 0.47% | F |
| 3BR | $3,210 | $645,278 | 0.5% | F |
| 4BR | $3,670 | $730,499 | 0.5% | F |
| 5BR | $4,257 | $848,514 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 33144 in Miami, FL, provides a detailed look at the financial viability of properties under the program. To begin, let's annualize the Fair Market Rent (FMR) for a 2-bedroom apartment, which is set at $2320 for FY 2024. This translates to an annual rental income of $27,840. Given the median home value in the area stands at $621,077, we can calculate the implied gross yield for a Section 8 property as follows:
Implied Gross Yield = (Annual Rental Income / Median Home Value) * 100
= ($27,840 / $621,077) * 100
= 4.48%
Next, let's consider the Zillow Observed Rent Index (ZORI), which reflects the market rent at $2,364 per month. Annualizing this figure gives us an annual rental income of $28,368. Using the same median home value, the implied gross yield for a market-rent property is calculated as:
Implied Gross Yield = (Annual Rental Income / Median Home Value) * 100
= ($28,368 / $621,077) * 100
= 4.57%
The difference between these two yields is marginal, with the market rent scenario offering a slightly higher return. However, the reality of the situation must be considered through the lens of local market conditions. With a renter density of 47.4%, it's clear that a significant portion of the population in ZIP 33144 relies on rental housing, including those who might qualify for Section 8 assistance.
The lack of data on days on market (DOM) suggests either limited availability or that rentals move quickly once listed, indicating strong demand. In such a scenario, the stability offered by Section 8 contracts, despite the lower gross yield, could outweigh the risk of vacancy and the administrative burden associated with market-rate tenancies. Thus, while the market rent offers a marginally better return, the predictability and demand for subsidized housing make the Section 8 option a solid choice for many investors.
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.