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 | $1,520 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,830 | $206,519 | 0.89% | C |
| 3BR | $2,340 | $353,243 | 0.66% | D |
| 4BR | $2,840 | $450,438 | 0.63% | D |
| 5BR | $3,294 | $1,011,875 | 0.33% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 33559, located in Lutz, Florida, hinges on a detailed analysis of its yield and stability metrics. On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,950. This figure represents the average rent that can be charged for a unit under the Section 8 program. The local market rent stands slightly lower at $1,872, indicating a competitive but favorable rental environment. However, the median home value of $376,332 suggests a higher investment cost, which impacts the overall yield potential.
Moving to the stability axis, we see that approximately 41.8% of residents are renters, providing a solid tenant base. Unfortunately, the data does not provide an average number of days on the market (DOM), which would be crucial for assessing how quickly properties can be leased. The median household income of $80,185 supports the ability of tenants to pay rent consistently, enhancing market stability.
Given these figures, ZIP 33559 is best classified as a steady-cashflow zone. The relatively high FMR compared to market rent and the significant median home value indicate that landlords can expect stable returns through consistent rental income without the volatility associated with flipping properties. Additionally, the moderate percentage of renters combined with a decent median income level suggests a reliable tenant pool capable of sustaining long-term leases. While the yield is not exceptionally high due to the high property values, it is sufficient to generate regular cash flow for investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.