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 | $1,900 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,910 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,960 | $155,595 | 1.26% | A |
| 2BR | $2,280 | $256,712 | 0.89% | C |
| 3BR | $2,910 | $339,443 | 0.86% | C |
| 4BR | $3,540 | $436,744 | 0.81% | C |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 33711 in Saint Petersburg, FL, reveals some key insights into potential investment returns. The Fair Market Rent (FMR) for a 2-bedroom unit in FY 2024 is set at $1940 per month, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2,312 per month for the same type of unit.
To annualize these figures, we multiply them by 12. This gives us an annualized Section 8 rental income of $23,280 ($1940 x 12) and an annualized market rental income of $27,744 ($2,312 x 12).
Given the median home value in ZIP 33711 is $273,331, we can calculate the implied gross yield for both scenarios. For the Section 8 scenario, the gross yield is approximately 8.5% ($23,280 / $273,331), whereas the market rent scenario yields about 10.1% ($27,744 / $273,331).
Considering the 30.3% renter density and the average Days on Market (DOM) of 56 days, it's important to note that the market rent scenario is more likely to be realized in practice. The lower renter density suggests a smaller pool of tenants who might be inclined towards market rates, and the relatively short DOM indicates a competitive rental market where properties can be quickly occupied at higher rates.
However, the stability and security offered by Section 8 contracts, which guarantee timely payments from the government, make the 8.5% gross yield a reliable baseline for investors looking for consistent cash flow. On the other hand, the 10.1% gross yield from market rents represents a more volatile but potentially higher return scenario, suitable for those willing to manage the risks associated with tenant turnover and payment variability.
In conclusion, while both gross yields provide valuable information for decision-making, the market conditions in ZIP 33711 favor the possibility of achieving higher returns through market rents. Yet, the predictability of Section 8 payments ensures a stable income stream, which is crucial for many investors.
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.