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 | $2,400 |
| 1 Bedroom | $2,480 |
| 2 Bedrooms | $2,880 |
| 3 Bedrooms | $3,680 |
| 4 Bedrooms | $4,470 |
| 5 Bedrooms | $5,185 |
| 6 Bedrooms | $5,807 |
| 7 Bedrooms | $6,272 |
| 8 Bedrooms | $6,586 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,880 | $664,111 | 0.43% | F |
| 3BR | $3,680 | $907,905 | 0.41% | F |
| 4BR | $4,470 | $2,099,643 | 0.21% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 33786, Belleair Beach, FL, might raise several concerns regarding the feasibility of investing in this area under the Section 8 program. Let's address these points directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $2780 for the fiscal year 2024 cover the mortgage on a home priced at $907,556?
The FMR of $2780 in ZIP 33786 for FY 2024 does not appear to be sufficient to cover the mortgage on a home valued at $907,556. To illustrate, using a standard 4% interest rate and a 30-year fixed mortgage term, the monthly payment on such a home would be approximately $4,300. This is significantly higher than the FMR, indicating that landlords would need to rely on other sources of income or have a substantial investment cushion to cover the difference.
Objection 2: Is there enough renter demand at 5.0%?
The data shows that only 5.0% of the population in ZIP 33786 participates in the Section 8 program. This low percentage suggests limited demand for Section 8 rental units. However, it is important to note that this figure alone does not provide a complete picture. The actual number of participants and their distribution across different property types and sizes would be necessary to determine if there is enough demand to sustain an investment in this area.
Objection 3: Will vouchers keep pace with market rents of $3,501?
The current market rent of $3,501 in ZIP 33786 is notably higher than the FMR set by HUD at $2780. This discrepancy raises concerns over whether voucher amounts will adequately compensate landlords for the cost of renting out their properties. If voucher payments do not increase to match the rising market rents, landlords may find themselves in a position where they are not covering their expenses, including maintenance and property taxes. The data does not provide insight into future adjustments of voucher amounts, so caution is advised when considering long-term investments.
In conclusion, while ZIP 33786 offers attractive investment opportunities, the data highlights significant challenges. The gap between FMR and market rents, combined with limited participation in the Section 8 program, means that careful consideration must be given before committing to this area. Landlords should also be prepared for potential fluctuations in voucher payments and ensure they have a thorough understanding of local market dynamics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.