Location: Tampa-St. Petersburg-Clearwater, FL | Metro: Tampa-St. Petersburg-Clearwater, FL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,530 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 33702 in Saint Petersburg, FL, reveals interesting insights into the investment potential of properties in this area. The Fair Market Rent (FMR) for a 2-bedroom apartment in FY 2024 is set at $1870 annually, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,904 per month. With a median home value of $298,484, these figures can be used to calculate the gross yield for both scenarios.
First, let's annualize the FMR and ZORI figures. For the FMR, the monthly rate is $1870 / 12 = $155.83. This translates to an annual rental income of $1870. The gross yield for this scenario is calculated by dividing the annual rental income by the median home value: $1870 / $298,484 = 0.627%, or approximately 0.63%.
Next, for the ZORI, the annual rental income is $1,904 * 12 = $22,848. The gross yield for this scenario is $22,848 / $298,484 = 7.657%, or approximately 7.66%. This represents a significant difference in gross yield between the two scenarios.
Given the renter density of 32.4% and the days on market (DOM) of 52 days, the market rent scenario appears more realistic. A higher DOM suggests that there is a competitive market for rentals, making it plausible for tenants to pay closer to the market rate rather than the FMR. Additionally, the lower renter density implies that landlords have a relatively smaller pool of potential tenants, further supporting the idea that market rates would prevail.
In conclusion, the gross yield for a Section 8 property in ZIP 33702 is around 0.63%, while the gross yield based on market rents is about 7.66%. The latter is more likely to reflect actual conditions due to the competitive rental market and lower tenant density.
Data Sources: FMR data from HUD (2027). 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.