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 | $1,920 |
| 1 Bedroom | $1,990 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,950 |
| 4 Bedrooms | $3,590 |
| 5 Bedrooms | $4,164 |
| 6 Bedrooms | $4,664 |
| 7 Bedrooms | $5,037 |
| 8 Bedrooms | $5,289 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,990 | $217,187 | 0.92% | C |
| 2BR | $2,310 | $382,799 | 0.6% | D |
| 3BR | $2,950 | $649,171 | 0.45% | F |
| 4BR | $3,590 | $1,184,744 | 0.3% | F |
| 5BR | $4,164 | $2,227,048 | 0.19% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 33609 in Tampa, FL, might have several concerns regarding the viability of investing in Section 8 properties. Let's address these objections head-on using available data.
Will Fair Market Rent (FMR) of $2100 cover the mortgage on a $612,860 home?
The FMR set by HUD for ZIP 33609 in fiscal year 2024 is $2100. To determine if this will cover the mortgage, we need to consider the interest rate and loan term. Assuming a fixed-rate mortgage at an average rate of 4.5% over 30 years, the monthly payment on a $612,860 home would be approximately $3076. This means that the FMR of $2100 falls short by nearly $1000 per month. Investors must consider additional sources of income or lower-cost properties to ensure financial stability.
Is there enough renter demand at 35.3%?
The percentage of renters in ZIP 33609 is 35.3%, which is relatively low compared to some other urban areas. However, Tampa has seen steady growth in its population and job market, indicating a rising demand for rental housing. The current demand suggests that while competition may exist, there is still a significant number of potential tenants. For context, the national average of renters is around 36%, so this area is slightly below but not significantly out of line with broader trends.
Will vouchers keep pace with market rents of $2,342?
The market rent in ZIP 33609 is $2,342, which is higher than the FMR of $2100. Vouchers are designed to help low-income families afford housing, but they do not always cover the full cost of market rents. In this case, the gap between the voucher amount and market rent is $242. Landlords should be aware that they may need to adjust their expectations or find ways to manage the difference, such as through subsidies or by targeting a specific demographic willing to pay the extra amount.
In conclusion, while ZIP 33609 presents some challenges, it also offers opportunities for landlords and small-portfolio investors. Careful consideration of property costs, tenant demographics, and the local economic landscape can lead to successful investments despite the limitations posed by the data.
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.