Section 8 Fair Market Rent (FMR) for ZIP 33161 - 2027

Investment Score for ZIP 33161

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	$1,870
1 Bedroom	$2,030
2 Bedrooms	$2,450
3 Bedrooms	$3,130
4 Bedrooms	$3,580
5 Bedrooms	$4,153
6 Bedrooms	$4,651
7 Bedrooms	$5,023
8 Bedrooms	$5,274

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	$2,030	$140,328	1.45%	A
2BR	$2,450	$379,791	0.65%	D
3BR	$3,130	$581,524	0.54%	F
4BR	$3,580	$682,489	0.52%	F
5BR	$4,153	$903,866	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33161 (North Miami, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 33161, as set by HUD for 2026, is $2,420 for a two-bedroom unit. This represents 49.8% of the median household income of $58,325, indicating that the rent is relatively affordable compared to local incomes. However, the actual median rent price for a two-bedroom unit on Zillow is $375,929, which is significantly higher than the FMR. The price-to-FMR ratio is 12.9x, suggesting that the actual market rents are much higher than the FMR. This means that Section 8 voucher holders face significant constraints in finding suitable housing within their budget. A voucher holder would have difficulty affording a typical two-bedroom rental unit at market rates, even if they were able to find landlords willing to accept the voucher. The gap between the FMR and the actual market rent indicates that there is a substantial challenge for voucher recipients to secure housing in North Miami. #### Affordability & Renter Profile With a renter population of 56.0%, North Miami has a high proportion of residents who rely on rental housing. The occupancy rate of 91.2% suggests that the rental market is quite tight, with most units occupied. Given the median household income of $58,325, it’s clear that many renters are struggling to afford housing, especially when considering the high market rent prices. The median household income is only slightly above the FMR for a two-bedroom unit, making it challenging for low-income families to find affordable housing without assistance. The high rent-to-income ratio implies that the market is undersupplied with affordable units, leading to increased competition among renters and potentially driving up market rents further. #### Investor Angle From an investor perspective, the FMR can be used as a benchmark for potential cash flow. The FMR for a two-bedroom unit is $2,420, which is the maximum amount a landlord could expect to receive from a Section 8 voucher holder. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical costs associated with owning and managing rental properties. Assuming a typical cost structure where expenses such as property taxes, insurance, maintenance, and utilities might total around 40% of the gross rent, the net rent would be approximately $1,452 per month ($2,420 * 60%). This figure must then cover mortgage payments or other financing costs. If the median home value is $375,929, and assuming a typical loan-to-value ratio of 80%, the mortgage amount would be $300,743.20. With a 30-year fixed-rate mortgage at a current average rate of 6.5%, the monthly mortgage payment would be roughly $1,845. Given these figures, the net rent of $1,452 falls short of covering the mortgage payment of $1,845, resulting in a negative cash flow of about $393 per month. This negative cash flow makes it difficult for investors to generate profit solely from rental income based on the FMR. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom apartments. The FMR for a one-bedroom unit is $1,980, which is still below the median market rent but provides a better chance of attracting tenants who can afford the rent. Additionally, the lower FMR for smaller units reduces the financial burden on voucher holders. 2. **Seek Government Subsidies**: Investors should explore government subsidies and programs designed to support affordable housing. These programs can help offset some of the financial losses incurred by renting at FMR levels. For example, Low-Income Housing Tax Credits (LIHTC) can provide significant tax benefits for developers who build affordable housing units. 3. **Consider Property Location**: Within ZIP code 33161, certain areas may offer more affordable housing options due to differences in local market conditions. Investors should conduct thorough research to identify neighborhoods where the market rent is closer to the FMR, thereby improving the chances of positive cash flow. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 33161 is to **skip** this market. The high price-to-FMR ratio and the resulting negative cash flow make it financially unviable to invest in rental properties primarily targeting Section 8 voucher holders. Investors should look for markets where the FMR is closer to the actual market rent, or where there are additional government incentives to support affordable housing projects.

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.