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 | $1,160 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $193,038 | 0.72% | D |
| 3BR | $1,780 | $258,135 | 0.69% | D |
| 4BR | $2,160 | $322,880 | 0.67% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 33542 (Zephyrhills, FL) does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,410 for fiscal year 2024 is below the current market rent, which stands at $1,524 (ZORI). This means that landlords receiving Section 8 payments will be short by $114 per month compared to market rates.
Acquisition is relatively affordable in Zephyrhills. With a median home value of $227,165, potential investors can find properties at reasonable prices. The days on market (DOM) average of 82 days indicates a moderate selling pace, but the low 0.3% price-cut share suggests that homes are generally sold close to their asking prices, implying strong local market conditions.
Tenant demand in ZIP 33542 is substantial. The area has a total population of 23,612, with 27.5% of residents being renters. This equates to approximately 6,493 rental units needed to meet the demand. However, the availability of these units and their alignment with Section 8 requirements remains an important consideration.
Based on the analysis, while the rent math does not favor landlords due to the discrepancy between FMR and market rents, the acquisition cost is reasonable given the median home value and the robustness of the local housing market. Tenant demand is present, but the challenge lies in ensuring that the available rental stock meets the needs of Section 8 participants. Landlords should carefully evaluate the costs and benefits before investing in this ZIP code.
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.