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 | $1,440 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,490 | $89,033 | 1.67% | A+ |
| 2BR | $1,730 | $194,294 | 0.89% | C |
| 3BR | $2,210 | $359,572 | 0.61% | D |
| 4BR | $2,690 | $415,908 | 0.65% | D |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 33709 (Saint Petersburg, FL) for Section 8 investment, follow this decision tree:
1) Does FMR $1,680 (zip FY 2024) clear debt service on a $263,763 property?
Yes: The Fair Market Rent (FMR) of $1,680 is sufficient to cover the debt service on a property valued at $263,763. This means that the rental income will meet the mortgage payments and other financial obligations associated with owning the property.
No: The FMR of $1,680 does not clear the debt service on a property costing $263,763. Landlords should consider properties with lower purchase prices or higher FMRs to ensure that rental income can cover all financial obligations.
It Depends: The adequacy of the FMR to cover debt service also hinges on the specifics of the mortgage terms, such as interest rate and loan type. If these factors are favorable, then the FMR may still be adequate despite the relatively high property cost.
2) Is market rent $1,965 (ZORI) above, at, or below FMR?
Above: The market rent of $1,965 is higher than the FMR of $1,680. This suggests that landlords might find opportunities to earn more from non-Section 8 tenants, though they must weigh the potential for reduced demand from Section 8 participants.
At: The market rent is equal to the FMR. Landlords can expect to receive the FMR amount, which is standard for the area, ensuring that rental income aligns with the local housing market expectations.
Below: The market rent is lower than the FMR. While unlikely given the data, if this were the case, landlords would face challenges in finding tenants willing to pay the FMR, reducing their potential rental income.
3) Are 23.9% renters + 36-day DOM enough demand?
Yes: With 23.9% of the population being renters and an average Days on Market (DOM) of 36 days, there is a steady demand for rental properties. This indicates that landlords can expect a reasonable turnover rate and occupancy levels.
No: If the percentage of renters is significantly lower or the DOM is much longer, the demand for rental properties would be insufficient. However, based on the provided data, this scenario does not apply to ZIP 33709.
It Depends: The sufficiency of demand also relies on the landlord's ability to manage and maintain the property. Effective management can attract tenants faster, reducing the DOM and increasing occupancy rates.
In conclusion, ZIP 33709 presents a viable option for Section 8 investment, given the FMR sufficiently covers debt service, market rent is above FMR, and there is adequate demand. However, landlords must evaluate their own financial capabilities and management strategies to make the most informed decision.
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.