Section 8 Fair Market Rent (FMR) for ZIP 33617 - 2027

Investment Score for ZIP 33617

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,580
1 Bedroom	$1,630
2 Bedrooms	$1,900
3 Bedrooms	$2,430
4 Bedrooms	$2,950
5 Bedrooms	$3,422
6 Bedrooms	$3,833
7 Bedrooms	$4,140
8 Bedrooms	$4,347

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,630	$102,517	1.59%	A+
2BR	$1,900	$163,304	1.16%	B
3BR	$2,430	$324,301	0.75%	D
4BR	$2,950	$459,927	0.64%	D
5BR	$3,422	$570,615	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33617 (Temple Terrace, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 33617, as set by HUD for 2026, is $2010 for a two-bedroom unit. This represents 47.3% of the median household income of $50,948 in the area. However, the actual rent charged for a two-bedroom unit is significantly higher, with the Zillow median price for a two-bedroom property being $166,137. The price-to-FMR ratio is 6.9x, indicating that the actual cost of renting a two-bedroom unit is nearly seven times the FMR. This means that Section 8 voucher holders face significant constraints in finding affordable housing. While the voucher covers up to $2010 per month for a two-bedroom unit, landlords may be hesitant to accept vouchers due to the high disparity between the FMR and the actual market rent. Additionally, voucher holders might struggle to find units that fit within their budget, especially considering the high rent-to-income ratio. #### Affordability & Renter Profile ZIP code 33617 has a population of 47,851, with 56.8% of residents being renters. This indicates a strong rental market where a majority of the residents are looking for affordable housing options. The occupancy rate of 91.9% suggests that there is little vacancy in the rental market, making it a tight market for both renters and landlords. Given that the median household income is $50,948, many residents may find it challenging to afford the high rent prices. The FMR for a three-bedroom unit is $2570, which is 50.4% of the median income, further highlighting the affordability challenges faced by families. The high rent-to-FMR ratio also implies that the market is skewed towards higher-end rentals, leaving limited options for low-income families who rely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 33617 presents a mixed picture. The FMRs are set to ensure that housing remains affordable for low-income households, but the actual market rents are much higher. For instance, the FMR for a two-bedroom unit is $2010, while the Zillow median price suggests that the actual rent could be around $2400 (assuming a 6.9x ratio). To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing rental properties. These include mortgage payments, property taxes, insurance, maintenance, and management fees. Given the high price-to-FMR ratio, an investor would likely face a negative cash flow if they were to rent out their properties strictly at the FMR rates. However, the tight market conditions and high demand for rental properties could provide opportunities for investors willing to accept Section 8 vouchers. The challenge lies in balancing the need for affordable housing with the financial viability of the investment. The investment grade for this ZIP code would be moderate to low, given the high costs relative to the FMR and the potential difficulty in attracting tenants who can pay market rates. #### Specific Actionable Insights 1. **Targeting Affordable Units**: Investors should focus on acquiring properties that can be rented out at or slightly above the FMR rates. For example, a two-bedroom unit priced at $2010-$2200 could attract both Section 8 voucher holders and other low-income renters. This strategy would help mitigate the risk of negative cash flow while still providing affordable housing options. 2. **Government Programs**: Utilize government programs designed to support affordable housing. For instance, the Low-Income Housing Tax Credit (LIHTC) program could offer incentives to develop or rehabilitate properties specifically for low-income residents. This would help reduce the overall cost burden and make the investment more attractive. 3. **Community Partnerships**: Engage with local community organizations and housing authorities to understand the needs and preferences of the tenant base. This could lead to better placement of tenants and potentially higher occupancy rates, which are crucial for maintaining positive cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 33617 is to **Hold**. While the market is tight and there is a high demand for rental properties, the significant gap between the FMR and actual market rents poses a substantial challenge. Investors should carefully evaluate the financial implications of accepting Section 8 vouchers and consider strategies such as targeting affordable units and leveraging government programs to improve the investment’s viability. The high price-to-FMR ratio makes it difficult to achieve positive cash flow without some flexibility in pricing or additional subsidies.

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.