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 | $1,750 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,810 | $114,196 | 1.58% | A+ |
| 2BR | $2,100 | $295,008 | 0.71% | D |
| 3BR | $2,680 | $460,611 | 0.58% | F |
| 4BR | $3,260 | $841,715 | 0.39% | F |
| 5BR | $3,782 | $1,552,312 | 0.24% | F |
U.S. Census Bureau data (2024)
Investors looking at ZIP code 33703 in Saint Petersburg, Florida, often have several concerns regarding the feasibility of investing in properties under the Section 8 program. Here, we address three common objections with the available data.
Objection 1: Will Fair Market Rent (FMR) of $2080 cover the mortgage on a $386,675 home?
The FMR of $2080 for ZIP 33703 does not guarantee that it will cover the mortgage payment on a $386,675 home. To determine if the FMR is sufficient, you need to calculate the monthly mortgage payment based on current interest rates and loan terms. Assuming a 30-year fixed-rate mortgage with an average interest rate of around 5%, the monthly principal and interest payment would be approximately $2,073. This means that the FMR of $2080 would fall short by about $73 per month. However, investors can mitigate this risk by considering homes with lower purchase prices or by securing a property with a higher rental value that exceeds the FMR.
Objection 2: Is there enough renter demand at 19.1%?
The percentage of renters in ZIP 33703 is 19.1%. While this figure might seem low compared to other areas, it still represents a significant portion of the population. The key metric here is the actual number of renters rather than the percentage. With a total population of over 10,000, this translates into nearly 2,000 renters. Moreover, the demand for affordable housing remains strong, and the Section 8 program serves as a reliable source of tenants who are committed to paying their rent on time. It's also worth noting that the local economy and job market can influence the number of renters; therefore, analyzing these factors is crucial in assessing the overall demand.
Objection 3: Will vouchers keep pace with $2,656 market rents?
The Fair Market Rent set by HUD for ZIP 33703 is $2080, which is significantly below the average market rent of $2,656. This discrepancy suggests that voucher holders may struggle to afford market-rate apartments, potentially limiting the pool of potential tenants. However, the Section 8 program is designed to provide subsidies for lower-income families, and the voucher amount is adjusted annually to reflect changes in the cost of living and housing costs. While the data does not explicitly state whether future adjustments will bridge the gap between FMR and market rents, historical trends show that adjustments do occur. Investors should monitor these adjustments closely to ensure they remain competitive in attracting tenants.
The data provides insights into the challenges and opportunities present in ZIP 33703. While there are risks associated with relying solely on Section 8 tenants, the presence of a stable tenant base and the potential for adjustments in voucher amounts can make this a viable investment option. Careful consideration of the specific property and its location within the ZIP code can help mitigate some of these risks.
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.