Section 8 Fair Market Rent (FMR) for ZIP 33196 - 2027

Investment Score for ZIP 33196

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	$2,350
1 Bedroom	$2,560
2 Bedrooms	$3,090
3 Bedrooms	$3,950
4 Bedrooms	$4,520
5 Bedrooms	$5,243
6 Bedrooms	$5,872
7 Bedrooms	$6,342
8 Bedrooms	$6,659

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	$2,560	$221,487	1.16%	B
2BR	$3,090	$295,357	1.05%	B
3BR	$3,950	$530,243	0.74%	D
4BR	$4,520	$706,410	0.64%	D
5BR	$5,243	$813,521	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33196 (The Hammocks, FL) #### Section 8 Voucher Dynamics In The Hammocks, Florida, the Fair Market Rent (FMR) for 2026 is set at $3000 for a two-bedroom unit. This figure represents 37.9% of the median household income of $94,961. However, the actual rental market is significantly higher, with the Zillow median price for a two-bedroom home being $296,545. This translates to a price-to-FMR ratio of 8.2x, indicating that the actual market rent far exceeds the FMR. This disparity creates significant constraints for voucher holders. The FMR is designed to ensure that low-income families can afford housing, but given the high actual market rents, many voucher holders may struggle to find units that accept their vouchers and fall within the FMR limits. For example, a voucher holder might have a voucher worth $3000 for a two-bedroom unit, but finding a landlord willing to accept this amount when the market rate is much higher could be challenging. #### Affordability & Renter Profile The Hammocks has a population of 54,668, with 32.7% of residents being renters. This suggests a substantial demand for rental properties. The occupancy rate of 97.1% indicates a tight market where most available units are occupied, leaving little room for new entrants or those seeking alternative housing options. Given the median household income of $94,961, the majority of residents are likely middle-class individuals who can afford higher rents. However, the 32.7% of renters represent a segment of the population that may be more financially constrained. The high price-to-FMR ratio implies that the market is not particularly affordable for lower-income renters, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 33196 presents both opportunities and challenges. The high actual market rents suggest that there is potential for strong cash flow if investors can secure properties at or below the FMR. However, the tight market and high occupancy rates mean that competition for rental properties is fierce, and securing a property at the FMR may be difficult. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the cost of acquiring and maintaining rental properties. Given the Zillow median price of $296,545 for a two-bedroom home, the acquisition cost is quite high. If we assume a typical mortgage rate of 5%, the monthly mortgage payment would be approximately $1483 based on a 30-year fixed-rate mortgage. Adding in other costs such as property taxes, insurance, maintenance, and management fees, the total monthly expenses could easily exceed the FMR of $3000. Therefore, while the market rents are high, achieving positive cash flow solely through Section 8 vouchers may be challenging. Investors should carefully evaluate their acquisition costs and ongoing expenses before entering this market. #### Investment Grade Based on the data provided, the investment grade for this ZIP code appears to be moderate to low. The high price-to-FMR ratio and the difficulty in finding properties that accept Section 8 vouchers at or below the FMR indicate that the risk of negative cash flow is relatively high. Additionally, the tight market conditions suggest that there may be limited opportunities for acquiring properties at favorable prices. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should prioritize acquiring properties that fall into the lower rent categories, such as one-bedroom units ($2460) or zero-bedroom units ($2250). These units are more likely to align with the FMR and provide better cash flow potential. 2. **Consider Multi-Family Properties**: Single-family homes are expensive in this market, with the Zillow median price being over $296,000. Multi-family properties, which often have lower per-unit acquisition costs, may offer a better opportunity for positive cash flow. Investors should look for multi-family complexes that can accommodate multiple Section 8 tenants. 3. **Negotiate with Landlords**: Given the high price-to-FMR ratio, landlords may be reluctant to accept Section 8 vouchers. Investors should be prepared to negotiate and potentially offer incentives to landlords to accept these vouchers. This could include offering to cover some of the upfront costs associated with renting to voucher holders. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 33196 is to **Skip**. The high actual market rents and the tight market conditions make it difficult to achieve positive cash flow solely through Section 8 vouchers. While there is a significant demand for rental properties, the financial constraints imposed by the FMR and the high acquisition costs suggest that this market may not be suitable for investors looking to rely heavily on Section 8 vouchers for their rental income.

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.