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 | $1,820 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,400 |
| 5 Bedrooms | $3,944 |
| 6 Bedrooms | $4,417 |
| 7 Bedrooms | $4,770 |
| 8 Bedrooms | $5,009 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $224,330 | 0.98% | C |
| 3BR | $2,800 | $335,539 | 0.83% | C |
| 4BR | $3,400 | $439,067 | 0.77% | D |
| 5BR | $3,944 | $580,956 | 0.68% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP 33594 (Valrico, FL) can be analyzed using the Fair Market Rent (FMR) and the Zillow Observed Rent Index (ZORI). For a two-bedroom property, the annualized FMR for FY 2024 is $2250, while the ZORI stands at $2,264. Given the median home value of $369,768, we can calculate the gross yield for both scenarios.
In the case of the FMR, the annual rental income would be $2250, resulting in a gross yield of approximately 0.61%. This calculation is derived from dividing the annual rental income ($2250) by the median home value ($369,768). For the ZORI, the annual rental income would be $27,168, leading to a gross yield of about 7.35%. This figure is obtained by multiplying the monthly ZORI ($2,264) by 12 months and then dividing by the median home value ($369,768).
Considering the 22.8% renter density and the 25-day Days on Market (DOM), the ZORI scenario presents a more realistic gross-yield comparison. The higher renter density suggests a robust demand for rental properties, which supports the higher market rent. Additionally, the relatively short DOM indicates that properties are likely to be occupied quickly, reducing vacancy rates and supporting the use of market rent figures for investment analysis.
The gross yield under the ZORI scenario is significantly higher than that under the FMR scenario, making it a more attractive option for landlords and small-portfolio investors. While the FMR provides a baseline for rental subsidies, the ZORI reflects the actual rental market conditions and is therefore a better indicator of potential returns on investment.
Investors should focus on the ZORI-based gross yield of 7.35% when evaluating the performance of rental properties in Valrico, FL. This yield is more reflective of the current market conditions and tenant demand, providing a clearer picture of the financial viability of Section 8 properties in this area.
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.