Location: Tampa-St. Petersburg-Clearwater, FL | Metro: Tampa-St. Petersburg-Clearwater, FL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $216,547 | 0.57% | F |
| 3BR | $1,570 | $317,700 | 0.49% | F |
| 4BR | $1,910 | $350,184 | 0.55% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 33540, located in Zephyrhills, FL, within the Tampa-St. Petersburg-Clearwater, FL MSA, reveals several key points relevant to landlords and small-portfolio investors.
The first question concerns whether the rent math works. The Fair Market Rent (FMR) for ZIP 33540 in fiscal year 2024 is set at $1,270, which is higher than the market rent reported by the Census ACS of $1,107. This suggests that landlords can potentially charge slightly above the market rate but should be cautious about overpricing to avoid vacancies.
Regarding the affordability of acquisition, the median home value in ZIP 33540 stands at $330,991. However, the lack of data on days on market (DOM) and the low price-cut share of 0.2% indicate that homes are selling quickly and without significant discounts, suggesting a competitive market for property acquisition.
Finally, examining tenant demand, ZIP 33540 has a population of 11,390, with 11.4% of residents being renters. This relatively low renter share implies limited demand for rental properties compared to owner-occupied homes, which could pose challenges for landlords looking to fill units.
In conclusion, while the potential to charge above-market rents exists, the high competition for acquisitions and limited tenant demand make ZIP 33540 a challenging area for landlords and small-portfolio investors. The median home value of $330,991 combined with the quick sales and minimal price reductions suggest that securing properties may require strategic investment and possibly a focus on areas with higher renter shares to ensure consistent occupancy. Landlords must carefully consider these factors before entering the market in Zephyrhills.
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.