Section 8 Fair Market Rent (FMR) for ZIP 33837 - 2027

Investment Score for ZIP 33837

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	$1,650
1 Bedroom	$1,760
2 Bedrooms	$2,110
3 Bedrooms	$2,900
4 Bedrooms	$3,530
5 Bedrooms	$4,095
6 Bedrooms	$4,586
7 Bedrooms	$4,953
8 Bedrooms	$5,201

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	$2,110	$273,241	0.77%	D
3BR	$2,900	$300,623	0.96%	C
4BR	$3,530	$354,082	1%	C
5BR	$4,095	$437,023	0.94%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33837 (Davenport, FL) #### Section 8 Voucher Dynamics In ZIP code 33837, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,050 per month for 2026. This amount represents approximately 30.3% of the median household income of $81,276, indicating that it aligns well with HUD’s guidelines for affordability. However, the actual rent for a two-bedroom unit in Davenport, FL, based on Zillow data, is significantly higher at $277,895 annually, which translates to a monthly rent of about $23,158. The price-to-FMR ratio of 11.3x suggests that the actual rental prices are far above the FMR, creating a significant gap between what voucher holders can afford and what landlords are charging. This means that Section 8 voucher holders would likely face substantial difficulty finding units that accept their vouchers due to the high actual rental prices. #### Affordability & Renter Profile The renter population in Davenport, FL, constitutes 18.5% of the total population of 47,389, equating to approximately 8,757 renters. Given the occupancy rate of 79.9%, it implies that there is a relatively tight market, with most available units being occupied. The median household income of $81,276 indicates that the area is moderately affluent, but the high actual rental prices suggest that the market is not particularly affordable for renters. The FMR for a two-bedroom unit at $2,050 is considerably lower than the actual rental price of $23,158, making it challenging for renters to find affordable housing. This tight market condition coupled with high rental prices suggests that the demand for rental properties is strong, but the supply is limited, especially for those who rely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 33837 presents a mixed scenario. While the median home value for a two-bedroom unit is quite high at $277,895, the FMR of $2,050 for such units is much lower. This discrepancy could potentially make it difficult for investors to achieve positive cash flow if they are relying solely on FMR rates. To illustrate, if an investor were to purchase a two-bedroom property at the median price of $277,895 and finance it with a 30-year fixed-rate mortgage at a typical interest rate of 5%, the monthly mortgage payment would be around $1,477. Adding in estimated property taxes (assuming a tax rate of 1.2%), insurance ($100/month), and maintenance costs ($100/month), the total monthly expenses would be approximately $1,877. At the FMR rate of $2,050, the net positive cash flow would only be $173 per month, which is minimal considering the high purchase price and other associated costs. Given these figures, the investment grade for this ZIP code appears to be low for Section 8-focused investors. The primary constraint is the high cost of acquiring properties, which makes achieving a reasonable return on investment challenging when relying on FMR rates. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high actual rental prices, investors might consider focusing on smaller units like one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1,680, which is still below the actual rental prices but offers a slightly better margin compared to larger units. Investors should look for opportunities where the acquisition cost is lower, allowing them to achieve a more favorable cash flow position. 2. **Consider Alternative Financing Options**: Traditional financing methods may not yield sufficient returns given the high property values. Investors could explore alternative financing options such as hard money loans or private lenders that offer quicker funding and potentially lower interest rates. This could help reduce the overall cost of ownership and improve the cash flow situation. 3. **Seek Out Subsidized Programs**: Since the actual rental prices are so high, investors might want to look into programs that provide additional subsidies beyond the standard Section 8 voucher. These programs could include state or local housing assistance initiatives that supplement the FMR, thereby increasing the potential rental income and improving the overall financial viability of the investment. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 33837 (Davenport, FL) is to **Skip** this market. The high actual rental prices and the tight market conditions make it challenging to find properties that are both affordable and suitable for Section 8 tenants. Additionally, the minimal cash flow at FMR rates suggests that the returns on investment would be insufficient to justify the high upfront costs and ongoing expenses. Investors looking to focus on Section 8 properties would likely find more favorable conditions in areas with lower property values and closer alignment between FMR and actual rental prices.

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.