Location: Wildwood-The Villages, 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 | $840 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $218,387 | 0.47% | F |
| 3BR | $1,250 | $340,025 | 0.37% | F |
U.S. Census Bureau data (2024)
The rough Section 8 cap-rate picture for ZIP 33597 (Webster, FL) can be derived using the annualized Fair Market Rent (FMR) and market rent figures against the median home value.
The 2BR FMR for FY 2024 in ZIP 33597 is $1130 per month, implying an annualized income of $13,560. With a median home value of $287,440, the implied gross yield for the Section 8 scenario is approximately 4.72%. This is calculated as follows: $13,560 / $287,440 = 0.0472 or 4.72%.
The market rent for a 2BR unit in ZIP 33597 is $886 per month, resulting in an annualized income of $10,632. Using the same median home value of $287,440, the implied gross yield for the market rent scenario is approximately 3.70%. This is calculated as follows: $10,632 / $287,440 = 0.0370 or 3.70%.
Given the 10.3% renter density in ZIP 33597, it is more realistic to consider the Section 8 scenario as the basis for investment analysis. The lower renter density suggests that a significant portion of the housing stock is owner-occupied, making the market rent scenario less applicable for a broad analysis. Furthermore, the days on market (DOM) data is not available, which would provide additional insight into the liquidity of the rental market. However, based on the gross yield comparison alone, the Section 8 scenario offers a higher return at 4.72% compared to the market rent scenario at 3.70%.
Landlords and small-portfolio investors should focus on the higher gross yield offered by the Section 8 program when considering investments in ZIP 33597. This scenario aligns better with the local rental market dynamics, given the limited number of rental units relative to owner-occupied properties.
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.