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 | $1,340 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $286,911 | 0.56% | F |
| 3BR | $2,060 | $372,676 | 0.55% | F |
| 4BR | $2,500 | $449,572 | 0.56% | F |
| 5BR | $2,900 | $606,834 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 33567 in Plant City, FL, reveals a significant disparity between the federally mandated Fair Market Rent (FMR) and the actual market rents. For a two-bedroom property, the annualized FMR for FY 2024 stands at $1640, while the Census ACS reports the market rent at $1,319 per month.
To calculate the implied gross yield for both scenarios, we first need to determine the annual rental income. The annualized FMR of $1640 translates to an annual rental income of $19,680. Given the median home value of $394,338, the implied gross yield for the FMR scenario is approximately 5%. In contrast, the market rent of $1,319 per month amounts to an annual rental income of $15,828, resulting in a gross yield of about 4% when compared to the median home value.
The 20.1% renter density in Plant City suggests that a substantial portion of the population is already renting, which could imply a competitive rental market. However, the N/A-day Days on Market (DOM) indicates incomplete data, making it challenging to gauge the exact competitiveness of the market solely based on this metric.
Considering the federal rent limits imposed by Section 8, the FMR scenario yields a higher gross return at 5%. This figure is crucial for landlords and small-portfolio investors as it represents the potential rental income without factoring in expenses such as maintenance, property management, and vacancy rates. On the other hand, the market rent scenario offers a lower gross yield of 4%, reflecting the actual rental rates landlords might expect if they were not participating in the Section 8 program.
In reality, landlords should consider the FMR scenario as the upper limit of what they can charge under the Section 8 program. While this provides a better gross yield, it also means adhering to the strict regulations and requirements of the program, which can affect the overall net operating income. The market rent scenario, though offering a lower gross yield, allows for greater flexibility and potentially higher long-term returns if rental rates rise above the FMR over time.
Given the 20.1% renter density, it's likely that there is enough demand to support both types of rental scenarios. However, the choice between participating in the Section 8 program or not depends on the landlord's tolerance for regulatory constraints versus the desire for a higher gross yield.
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.