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 | $1,280 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,320 | $170,246 | 0.78% | D |
| 2BR | $1,540 | $226,013 | 0.68% | D |
| 3BR | $1,970 | $293,293 | 0.67% | D |
| 4BR | $2,390 | $321,271 | 0.74% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 33605 in Tampa, FL, reveals key insights for landlords and small-portfolio investors. First, the rent math does not work favorably for properties participating in the Section 8 program. The Fair Market Rent (FMR) set at $1540 for fiscal year 2024 is notably lower than the market rent, which stands at $1,893 as indicated by the Zillow Observed Rental Index (ZORI). This discrepancy means that landlords would receive less income per unit compared to the prevailing market rates.
Second, the acquisition of homes in this area is relatively affordable. With a median home value of $257,779, potential investors can purchase properties without facing excessively high costs. Additionally, the days on market (DOM) figure of 33 days suggests that homes are selling quickly, indicating a healthy real estate market. The low 0.3% price-cut share further supports this notion, showing that sellers rarely need to reduce their asking prices to make a sale.
Third, there is a significant tenant demand in ZIP 33605. The area has a population of 16,030, with 59.8% of residents being renters. This high percentage of renters indicates a robust market for rental properties, ensuring a steady stream of potential tenants.
Verdict: While the rent math does not favor Section 8 participation due to the lower FMR compared to market rents, the acquisition of homes remains affordable with quick sales and minimal price adjustments. The strong tenant demand, driven by a high renter share, makes this ZIP code an attractive investment opportunity for those willing to navigate the challenges of lower rental income. However, landlords should consider the balance between Section 8 benefits and the financial implications of reduced rental rates against the backdrop of a thriving rental market.
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.