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 | $1,630 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,960 | $241,994 | 0.81% | C |
| 3BR | $2,500 | $387,485 | 0.65% | D |
| 4BR | $3,040 | $503,273 | 0.6% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 33773, which encompasses parts of Largo, Florida, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1810, while the market rent, as measured by the Zillow Rent Index (ZORI), stands at $2116. This creates a gap of $306, or approximately 16.9%, between what landlords can expect to receive through Section 8 vouchers and the prevailing market rate.
In this scenario where the FMR is lower than the market rent, landlords face a decision regarding the financial implications of accepting Section 8 tenants. While the program provides a steady stream of rental income, it does so at a rate that is below the open-market price. For landlords in Largo, where 25.9% of residents are renters and the median home value is $330,518, accepting Section 8 vouchers means foregoing potential additional income that could be realized by renting to non-voucher tenants willing to pay the market rate.
Furthermore, the median household income in Largo is $76,867, indicating that the local economy supports higher rents. However, landlords must weigh the benefits of guaranteed payment against the costs associated with housing voucher tenants. These costs include the time and resources required to maintain compliance with HUD standards, which can impact overall profitability.
The gap also highlights the financial burden placed on tenants, who often must contribute a portion of their income toward rent. In Largo, where the cost of living is reflected in a median home value of over $330,000, the difference between FMR and market rent underscores the challenge faced by low-income families relying on Section 8 assistance to find affordable housing. Landlords must consider these factors when deciding whether to participate in the Section 8 program, balancing the stability of rental income with the potential for higher yields in a competitive market environment.
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.