Section 8 Fair Market Rent (FMR) for ZIP 33160 - 2027

Investment Score for ZIP 33160

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	$2,500
1 Bedroom	$2,710
2 Bedrooms	$3,280
3 Bedrooms	$4,190
4 Bedrooms	$4,800
5 Bedrooms	$5,568
6 Bedrooms	$6,236
7 Bedrooms	$6,735
8 Bedrooms	$7,072

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	$2,710	$225,983	1.2%	B
2BR	$3,280	$460,771	0.71%	D
3BR	$4,190	$1,381,114	0.3%	F
4BR	$4,800	$3,410,338	0.14%	F
5BR	$5,568	$5,428,528	0.1%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33160 (North Miami Beach, FL) #### Section 8 Voucher Dynamics In ZIP code 33160, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $3,260 per month. This figure represents 58.4% of the median household income in the area, which is $67,040. The FMR for a three-bedroom unit is $4,180, and for a four-bedroom unit, it is $4,830. These figures are crucial for understanding how much a Section 8 voucher holder can afford. However, the actual rental market in North Miami Beach is significantly higher. According to Zillow, the median price for a two-bedroom home is $466,948, which translates to a monthly mortgage payment of approximately $2,122 if financed over 30 years at a 4% interest rate. When considering property taxes, insurance, and maintenance costs, the total cost of ownership can easily exceed the FMR. The price-to-FMR ratio for a two-bedroom unit is 11.9x, indicating that the median home price is nearly 12 times the FMR. This suggests that actual rents are likely well above the FMR, making it challenging for voucher holders to find suitable housing. For example, a two-bedroom apartment might rent for $3,500 or more, which exceeds the $3,260 FMR by $240. This gap creates a significant constraint for voucher holders who must find landlords willing to accept the lower FMR. #### Affordability & Renter Profile The population of North Miami Beach is 43,718, with 41.0% of residents being renters. The occupancy rate stands at 60.5%, suggesting that there is a moderate level of demand for rental properties. Given the high proportion of renters and the relatively low occupancy rate, the market appears to be somewhat balanced but leaning towards a tighter supply. The median household income of $67,040 indicates that the area has a mix of middle-income families and individuals. However, the fact that 58.4% of the median income is required for a two-bedroom apartment suggests that many residents face affordability challenges. This makes Section 8 vouchers particularly important for low-income households seeking affordable housing options. #### Investor Angle From an investor perspective, the FMR provides a baseline for rental pricing that ensures affordability for low-income tenants. However, the actual rental market in North Miami Beach is far more expensive. To determine if investing in this ZIP code is cash-flow positive, we need to consider the potential rental income versus the costs of ownership. Assuming a landlord rents out a two-bedroom unit at the FMR of $3,260, they would need to ensure that their total costs (including mortgage payments, property taxes, insurance, maintenance, and other expenses) do not exceed this amount. Given the median home price of $466,948, the monthly mortgage payment alone would be around $2,122, leaving room for additional expenses. However, the high price-to-FMR ratio of 11.9x implies that most properties are priced beyond the reach of typical Section 8 voucher holders. To achieve positive cash flow, an investor would need to either: 1. Purchase properties below the median price and keep operating costs low. 2. Find ways to increase the rental income beyond the FMR, such as through non-Section 8 tenants who can afford higher rents. Given the high median home price and the tight rental market, the investment grade for this ZIP code is moderate to low for Section 8-focused investors. The primary challenge is finding properties that can be rented out at the FMR while still generating positive cash flow. #### Specific Actionable Insights 1. **Target Lower Priced Properties**: Investors should focus on purchasing properties that are priced below the median home price of $466,948. This could mean targeting older homes or units in less desirable areas where the price-to-FMR ratio is lower. For instance, a property priced at $300,000 would have a monthly mortgage payment of approximately $1,400, leaving more room for other expenses and ensuring better cash flow. 2. **Consider Mixed-Income Developments**: Given the high proportion of renters and the limited availability of affordable housing, mixed-income developments could be a viable strategy. By offering a mix of Section 8 units and market-rate units, investors can balance the lower rental income from FMR units with higher income from market-rate units. This approach helps to mitigate the financial risks associated with relying solely on Section 8 vouchers. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 33160 is to **Skip**. The high median home price and the tight rental market make it difficult to find properties that can generate positive cash flow when rented out at the FMR. While there is a significant demand for affordable housing, the current market conditions in North Miami Beach are not favorable for investors primarily interested in Section 8 vouchers. If investors are willing to diversify their portfolio and include a mix of market-rate and Section 8 units, they might consider **Hold**. However, the primary focus should be on properties that offer a balance between affordability and profitability, rather than exclusively targeting Section 8 units.

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.