Section 8 Fair Market Rent (FMR) for ZIP 33823 - 2027

Investment Score for ZIP 33823

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,110
1 Bedroom	$1,110
2 Bedrooms	$1,350
3 Bedrooms	$1,830
4 Bedrooms	$2,260
5 Bedrooms	$2,622
6 Bedrooms	$2,937
7 Bedrooms	$3,172
8 Bedrooms	$3,331

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,350	$165,425	0.82%	C
3BR	$1,830	$286,342	0.64%	D
4BR	$2,260	$359,943	0.63%	D
5BR	$2,622	$426,677	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33823 (Auburndale, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 33823, Auburndale, FL, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1220, which represents approximately 20.5% of the median household income of $71,485. However, the actual median rent for a two-bedroom unit in Auburndale, according to Zillow, is $1650. This means that voucher holders face significant constraints, as the FMR is lower than the actual market rent. The difference between the FMR and the actual rent can be seen in the price-to-FMR ratio of 11.4x, indicating that the market rent is significantly higher than the FMR. #### Affordability & Renter Profile In Auburndale, 24.8% of the population are renters, suggesting a moderate rental market. With an occupancy rate of 88.3%, the market is relatively tight but not overly saturated. The median household income of $71,485 indicates that the area has a middle-income demographic, which could support a range of rental properties. However, the high price-to-FMR ratio suggests that the rental market is not particularly affordable for low-income households who rely on vouchers. This tight market dynamic could make it challenging for voucher holders to find suitable housing within their budget. #### Investor Angle From an investor perspective, the ZIP code 33823 presents a mixed picture. While the actual median rent for a two-bedroom unit is $1650, the FMR is only $1220. This implies that investors who are targeting Section 8 voucher holders will likely need to adjust their rental rates downward to attract these tenants. Given the high price-to-FMR ratio, it is unlikely that investors can achieve cash flow positivity solely based on the FMR. To determine the investment grade, one would need to consider factors such as vacancy rates, property management costs, and potential rental increases over time. However, the current data suggests that the market is not favorable for investors seeking to maximize returns through Section 8 vouchers alone. #### Specific Actionable Insights 1. **Rent Adjustment for Vouchers**: Investors should consider setting their rental rates closer to the FMR of $1220 for a two-bedroom unit if they wish to attract Section 8 voucher holders. This would ensure compliance with HUD guidelines and increase the likelihood of finding tenants. 2. **Focus on Middle-Income Renters**: Given the high price-to-FMR ratio, it might be more profitable to target middle-income renters who do not rely on vouchers. These renters are likely to pay closer to the actual market rate of $1650 for a two-bedroom unit, providing better cash flow and returns. 3. **Property Management Costs**: Investors should factor in the higher costs associated with managing properties in a tight rental market. High demand can lead to increased competition for tenants, necessitating higher marketing and maintenance expenses. Additionally, the need to offer competitive amenities and services to attract middle-income renters could further impact profitability. #### Bottom Line For investors focusing specifically on Section 8 vouchers, the recommendation for ZIP code 33823 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve cash flow positivity while adhering to HUD guidelines. Instead, investors might want to explore other ZIP codes with more favorable FMR-to-market rent ratios or consider diversifying their portfolio to include a mix of middle-income and voucher-supported rentals. If the goal is to maximize returns, Auburndale’s current market conditions do not align well with the objectives of Section 8-focused investments.

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.