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 | $1,500 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,550 | $138,911 | 1.12% | B |
| 2BR | $1,800 | $246,425 | 0.73% | D |
| 3BR | $2,300 | $431,006 | 0.53% | F |
| 4BR | $2,800 | $621,711 | 0.45% | F |
| 5BR | $3,248 | $900,400 | 0.36% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering Tampa, FL's ZIP 33618 for their rental portfolio might have several concerns regarding the feasibility of the market. Let's address these objections directly with the available data.
Will Fair Market Rent (FMR) of $1800 cover the mortgage on a $470,226 home?
The FMR of $1800 is a critical figure for determining the maximum rent that can be charged under the Section 8 program. However, the mortgage payment on a $470,226 home depends significantly on factors such as interest rates and loan terms. Assuming a typical 30-year fixed-rate mortgage with an average interest rate of around 4%, the monthly principal and interest payment would be approximately $2,250. This means that the FMR alone does not fully cover the mortgage. Landlords would need to consider additional income sources or other properties to offset this shortfall.
Is there enough renter demand at 30.0%?
The 30.0% figure represents the proportion of households that are renters. While this percentage indicates a significant portion of the population is interested in renting, it does not provide a complete picture of demand. To understand if this demand is sufficient, we must look at the total number of households and the vacancy rate. With 30.0% of households being renters, the market should support a reasonable number of units. However, without knowing the total number of households and the current vacancy rate, it is difficult to determine if the demand will meet supply expectations.
Will vouchers keep pace with $1,574 market rents?
The average market rent of $1,574 is higher than the FMR of $1800, which suggests that vouchers may not cover the full cost of market rents. The effectiveness of vouchers in covering market rents depends on the voucher amount and any potential adjustments made by the housing authority. If the voucher amounts are lower than the market rents, landlords might face a gap between what vouchers pay and what the market demands. This could lead to financial strain unless the landlord is willing to accept a lower rent or the housing authority increases voucher amounts to match market conditions.
In conclusion, while ZIP 33618 presents opportunities for landlords and small-portfolio investors, careful consideration of the financials and market dynamics is necessary. The FMR does not fully cover the mortgage on a median-priced home, and the demand for rentals is substantial but requires further analysis to ensure it aligns with supply. Lastly, the discrepancy between market rents and voucher amounts poses a risk that needs to be managed through strategic pricing or seeking higher voucher payments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.