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 | $1,870 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,490 |
| 5 Bedrooms | $4,048 |
| 6 Bedrooms | $4,534 |
| 7 Bedrooms | $4,897 |
| 8 Bedrooms | $5,142 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,930 | $230,752 | 0.84% | C |
| 2BR | $2,250 | $602,090 | 0.37% | F |
| 3BR | $2,870 | $872,207 | 0.33% | F |
| 4BR | $3,490 | $1,363,509 | 0.26% | F |
| 5BR | $4,048 | $2,035,512 | 0.2% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 33629 in Tampa, FL, reveals a significant gap between the federally mandated Fair Market Rent (FMR) and the local market rent levels. For a two-bedroom unit, the annualized FMR for FY 2024 stands at $2180, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2,533 per month.
To derive the gross yield, we must first calculate the annual rental income for both scenarios. With the FMR, the annual rental income would be $2180 multiplied by 12 months, equating to $26,160. When compared to the median home value of $1,011,077, this yields an implied gross yield of approximately 2.59%. In contrast, using the ZORI market rent figure of $2,533, the annual rental income amounts to $30,396, resulting in a gross yield of about 3.01%.
Given the 19.9% renter density and the 45-day days-on-market (DOM), the ZORI-based gross yield of 3.01% is more realistic. The lower renter density suggests that there might be fewer tenants willing to pay the higher market rent, but the relatively quick DOM of 45 days implies that properties can find tenants within a reasonable timeframe. However, the higher market rent aligns better with the overall housing market conditions in the area, making it a more practical scenario for most landlords and small-portfolio investors.
The FMR-based yield, while useful for understanding government assistance limits, does not reflect the true market potential for rental income in ZIP 33629. Investors should focus on the higher gross yield derived from market rents when evaluating the profitability of properties in this area.
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.