Section 8 Fair Market Rent (FMR) for ZIP 33173 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 33173

• MIAMI DADE HOUSING AND COMMUNITY DEV (Miami, FL) - 21,718 Section 8 vouchers
• HIALEAH HOUSING AUTHORITY (Hialeah, FL) - 5,890 Section 8 vouchers
• HOUSING AUTHORITY OF THE CITY OF MIAMI BEACH (Miami Beach, FL) - 3,576 Section 8 vouchers
• HOUSING AUTHORITY OF THE CITY OF HOMESTEAD (Homestead, FL) - 1,939 Section 8 vouchers
• MIAMI HSG CONSERVATION (Miami, FL) - 408 Section 8 vouchers
• Carrfour Supportive Housing, Inc. (Miami, FL) - 180 Section 8 vouchers

To decide whether to invest in ZIP 33173 (Miami, FL) for Section 8 properties, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $2770 cover the debt service on a property valued at $566,176?

• Yes. If your debt service is less than $2770 per month, then the FMR can cover it. This is critical because the rent received from Section 8 tenants cannot exceed the FMR set by HUD.
• No. If your debt service exceeds $2770 per month, investing in this ZIP code under Section 8 would not be financially viable. The rent collected would not be sufficient to cover the monthly mortgage payments.
• It Depends. If you're close to the threshold, evaluate other income sources or potential cost reductions. However, the primary criterion remains that the FMR must exceed the debt service costs.

Step 2: How does the Zillow Observed Rent Index (ZORI) of $2,664 compare to the FMR?

• Above. If ZORI is higher than the FMR, it indicates that market rents are higher than what Section 8 will pay. Landlords might consider alternative investments where they could potentially receive higher rents.
• At. If ZORI equals the FMR, then market conditions align well with Section 8 limits. This scenario provides a stable investment environment where the risk of renting below market rates is minimized.
• Below. If ZORI is lower than the FMR, it suggests that Section 8 rents are competitive with or slightly above the market rate. This can be advantageous if you aim to secure a steady tenant base without the risk of vacancy.

Step 3: Is the combination of 27.9% of the population being renters and an average Days on Market (DOM) of 35 days indicative of sufficient demand?

• Yes. A 27.9% rental rate combined with a relatively low DOM of 35 days indicates a healthy demand for rental properties. This suggests that properties in ZIP 33173 are likely to be occupied promptly, reducing the risk of vacancy.
• No. If the rental rate were significantly lower and the DOM much higher, it would suggest a weak rental market. However, given the current data, this scenario is unlikely.
• It Depends. Consider the specifics of your property and target tenant pool. For instance, certain amenities or property types might affect demand. Still, based on the overall rental rate and DOM, demand appears to be strong enough to support a Section 8 investment.

In conclusion, if the FMR of $2770 can cover your debt service, and you are comfortable with the ZORI being slightly below the FMR, then the strong rental demand in ZIP 33173 makes it a viable option for Section 8 investments.

Data Sources: FMR data from HUD (2027). 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.