Section 8 Fair Market Rent (FMR) for ZIP 33245 - 2027

FY 2027 Fair Market Rent Rates

The analysis for ZIP code 33245 in Florida focuses on deriving a rough picture of the Section 8 cap rate using the available data points.

The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 33245 for fiscal year 2024 is set at an annualized figure of $2320. This represents the baseline rental income that can be expected from a tenant participating in the Section 8 housing assistance program. Given that the median home value in the area is not available, we must rely on other metrics to infer potential gross yields.

In the absence of specific market rent data, it's challenging to provide a direct comparison between Section 8 rents and market rents. However, understanding that Section 8 rents are typically lower than market rates, the gross yield from a Section 8 property would also likely be lower compared to what could be achieved with market-rate rentals.

The implied gross yield from a Section 8 property in ZIP 33245 can be estimated based on the annual rent of $2320. Without knowing the median home value, we cannot calculate a precise cap rate; however, the gross yield is directly tied to the rental income. For instance, if a property were valued at $100,000 (a hypothetical figure used for illustrative purposes), the gross yield would be 2.32%. This calculation is purely illustrative since the actual median home value is not specified.

Given the lack of data on renter density and days on market (DOM), it's difficult to assess the practicality of either scenario. However, the general rule of thumb is that areas with higher renter density and shorter DOM tend to favor market-rate rentals over Section 8 due to potentially higher gross yields. In ZIP 33245, the absence of such data suggests caution when investing in properties intended for Section 8 tenants, as the gross yield is likely to be lower compared to what might be achievable with market-rate rentals.

To conclude, while the exact cap rate cannot be determined without additional information, the gross yield from a Section 8 property in ZIP 33245 is estimated to be around 2.32% based on the annual FMR of $2320. This is lower than what could be achieved with market-rate rentals, making the latter a more attractive option for investors seeking higher returns.

Data Sources: FMR data from HUD (2027).

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.