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 | $1,720 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,630 |
| 4 Bedrooms | $3,200 |
| 5 Bedrooms | $3,712 |
| 6 Bedrooms | $4,157 |
| 7 Bedrooms | $4,490 |
| 8 Bedrooms | $4,715 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,770 | $318,952 | 0.55% | F |
| 2BR | $2,060 | $760,980 | 0.27% | F |
| 3BR | $2,630 | $1,136,987 | 0.23% | F |
| 4BR | $3,200 | $1,096,187 | 0.29% | F |
U.S. Census Bureau data (2024)
In evaluating the viability of investing in ZIP code 33701 in Saint Petersburg, FL, several key concerns arise regarding the financial feasibility and market conditions. Let's address these directly using available data.
Objection 1: Will FMR $1860 (zip FY 2024) cover the mortgage on a $738,069 home?
The Fair Market Rent (FMR) for ZIP 33701 in fiscal year 2024 is set at $1860. This figure represents the median monthly rent for a two-bedroom apartment. To determine if this will cover the mortgage on a $738,069 home, we need to calculate the expected monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly mortgage payment would be approximately $3,600. Clearly, the FMR does not cover this amount. However, it's important to note that homes can be rented out for more than the FMR, especially considering the higher-end property values in this area.
Objection 2: Is there enough renter demand at 60.6%?
Renter demand in ZIP 33701 is at 60.6%. This percentage indicates that over half of the housing units are occupied by renters. While this figure suggests a decent level of rental activity, it also means that nearly 40% of the units are owner-occupied. The high renter demand is positive for investors looking to capitalize on the rental market, but it's crucial to consider the competition and vacancy rates. At 60.6%, there is sufficient demand to support rental properties, though the exact occupancy rate will depend on factors such as pricing and property condition.
Objection 3: Will vouchers keep pace with $2,539 market rents?
The average market rent for a two-bedroom unit in ZIP 33701 is $2,539. Vouchers are designed to help low-income tenants afford housing, but they often do not match the full market rent. According to recent HUD guidelines, the maximum voucher payment for a two-bedroom unit in this area is likely lower than $2,539. This could pose a challenge for landlords who rely solely on voucher recipients, as they might need to adjust their rental strategies to attract a broader tenant base or accept a lower profit margin.
While the data provides insights into the challenges and opportunities in ZIP 33701, it's essential to conduct further research to understand the specific dynamics of the local rental market. For instance, analyzing vacancy rates, the cost of utilities, and the average duration of tenancy can offer a clearer picture of the investment potential.
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.