Location: Tampa-St. Petersburg-Clearwater, FL | Metro: Tampa-St. Petersburg-Clearwater, FL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,610 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
To determine if a landlord should invest in ZIP code 33731 for Section 8 properties, follow this decision tree based on the provided data.
1) Does the Fair Market Rent (FMR) of $1850 cover debt service on a property?
Yes: If the FMR of $1850 can sufficiently cover the debt service, which includes mortgage payments, insurance, taxes, and maintenance costs, then it is a viable option for a Section 8 investment. This ensures that the landlord will not incur losses from renting to Section 8 tenants.
No: If the FMR does not cover the debt service, investing in this ZIP code would result in financial loss. Landlords must ensure that the rental income meets or exceeds their expenses to maintain profitability.
2) Is the market rent above, at, or below the FMR of $1850?
Above: If the market rent is higher than the FMR, landlords might consider alternative non-Section 8 tenants who could pay more. However, this also depends on the demand for Section 8 housing.
At: If market rents match the FMR, then the ZIP code is perfectly aligned for Section 8 investments. There is no premium to be missed out on, and the landlord can rely on the FMR to meet their financial obligations.
Below: If the market rent is below the FMR, then landlords can benefit from the guaranteed income from Section 8, which is higher than what they might receive from market-rate tenants.
3) Do the percentage of renters and days on the market (DOM) indicate sufficient demand?
It Depends: The demand for Section 8 housing in ZIP 33731 is contingent upon the percentage of renters and the DOM. A high percentage of renters combined with low DOM suggests strong demand. Conversely, if the percentage of renters is low or DOM is high, it indicates weaker demand and could make it harder to fill vacancies with eligible tenants.
Without specific figures for market rent, the percentage of renters, and DOM, the final recommendation cannot be definitively stated. However, using the provided FMR of $1850 as a baseline, landlords can evaluate their individual circumstances and decide whether ZIP 33731 is suitable for Section 8 investment.
Data Sources: FMR data from HUD (2027).
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.