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 | $1,650 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $3,070 |
| 5 Bedrooms | $3,561 |
| 6 Bedrooms | $3,988 |
| 7 Bedrooms | $4,307 |
| 8 Bedrooms | $4,522 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,700 | $108,775 | 1.56% | A+ |
| 2BR | $1,980 | $245,983 | 0.8% | C |
| 3BR | $2,530 | $387,733 | 0.65% | D |
| 4BR | $3,070 | $519,421 | 0.59% | F |
U.S. Census Bureau data (2024)
In Clearwater, Florida (ZIP 33765), the real estate market signals a period of stability with slight indications of potential growth over the next 12-24 months. The median home value stands at $343,373, reflecting a robust but not overheated housing environment. A key indicator of pricing power is the observation that only 0.3% of listings have reduced their prices. This low percentage suggests strong seller confidence and limited pressure on prices from oversupply. Additionally, the median days on market (DOM) being listed as N/A indicates a fast-moving market where homes are selling quickly, further reinforcing the notion of a balanced market with sellers holding the upper hand.
On the rental side, the forward-looking market analysis is supported by the Federal Market Rent (FMR) and Zillow Observed Rental Index (ZORI) figures. The FMR for ZIP 33765 in fiscal year 2024 is set at $1,810, while the current market rent, as measured by ZORI, is $1,707. This gap between projected government-assisted rents and the actual market rent points towards a scenario where long-term investors could benefit from an increase in rental income as the market adjusts to meet the higher FMR levels. Landlords and small-portfolio investors should prepare for a gradual rise in rental rates, aligning with the anticipated FMR adjustments.
The setup implied by these data points suggests that long-hold investors in Clearwater can expect moderate appreciation in property values. With the current median home value and the minimal price reductions among listings, it's reasonable to assume that the local real estate market will continue to attract buyers, maintaining or slightly increasing home values. However, the absence of significant historical appreciation trends means that investors should not anticipate dramatic increases. Instead, they should focus on the steady growth potential and the improving rental income outlook as the market moves closer to the FMR levels.
For those considering entering the market or expanding their portfolio, the combination of stable home values and positive rental dynamics provides a compelling case. The slight edge in favor of sellers and the expectation of rising rental incomes offer a balanced approach to investment, ensuring both capital preservation and income generation opportunities. Landlords and investors should closely monitor the local real estate trends and rental market conditions to capitalize on these favorable dynamics.
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.