Section 8 Fair Market Rent (FMR) for ZIP 33177 - 2027

Investment Score for ZIP 33177

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	$2,310
1 Bedroom	$2,510
2 Bedrooms	$3,030
3 Bedrooms	$3,870
4 Bedrooms	$4,430
5 Bedrooms	$5,139
6 Bedrooms	$5,756
7 Bedrooms	$6,216
8 Bedrooms	$6,527

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
2BR	$3,030	$444,967	0.68%	D
3BR	$3,870	$540,011	0.72%	D
4BR	$4,430	$651,384	0.68%	D
5BR	$5,139	$862,993	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33177 (Miami, FL) #### Section 8 Voucher Dynamics In ZIP code 33177, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2900 per month for the year 2026. This amount represents 42.1% of the median household income in the area, which is $82,682. For voucher holders, the FMR serves as a benchmark for rent payments, but it often falls short of covering the actual rental costs in the market. The Zillow median price for a two-bedroom home in this ZIP code is $441,782, indicating that the typical market rent is likely higher than the FMR. Given the high occupancy rate of 97.5%, landlords have little incentive to accept lower rents, especially when they can command market rates. Thus, voucher holders face significant constraints, as the FMR may not be sufficient to secure housing in a competitive market. #### Affordability & Renter Profile The renter population in ZIP code 33177 constitutes 23.4% of the total population, which stands at 59,056. With a median household income of $82,682, the affordability of housing is a critical issue for many residents. The FMR for a two-bedroom unit is $2900, which is only 42.1% of the median income. This suggests that renters in this ZIP code must allocate a substantial portion of their income towards housing, leaving less disposable income for other expenses. The high occupancy rate indicates a tight rental market where demand consistently outstrips supply, making it challenging for renters to find affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 33177 presents a mixed picture regarding cash flow and investment grade. The FMR for a two-bedroom unit is $2900, but the Zillow median price for such a unit is $441,782. This implies a price-to-FMR ratio of 12.7x, meaning that the median home value is significantly higher than what the FMR would suggest as a reasonable rental price. While the FMR provides a guideline for rental rates, the actual market rents are likely much higher due to the strong demand and limited supply. However, this also means that the potential for cash flow from Section 8 vouchers is limited, as the rents may not cover the full cost of ownership. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units, such as one-bedroom apartments, which have an FMR of $2370. These units are more likely to be rented at market rates, providing better cash flow opportunities. Additionally, the median income of $82,682 suggests that smaller units are more affordable for the average resident. 2. **Target Affordable Housing Projects**: Investors could explore opportunities in affordable housing projects that cater specifically to low-income families. By developing or acquiring properties that meet the criteria for affordable housing, investors can potentially benefit from government incentives and subsidies while still maintaining a reasonable cash flow. 3. **Consider Mixed-Income Developments**: Another strategy is to develop mixed-income housing projects that combine Section 8 units with market-rate rentals. This approach allows investors to balance the lower rents from Section 8 vouchers with higher rents from market-rate units, creating a more stable financial model. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 33177 is to **Skip** this area. The FMRs are significantly lower than the actual market rents, making it difficult to achieve positive cash flow solely through Section 8 vouchers. Instead, investors might want to look into areas with a more favorable price-to-FMR ratio or consider alternative strategies like mixed-income developments to balance the financial risks and rewards.

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.