Location: Tampa-St. Petersburg-Clearwater, FL | Metro: Lakeland-Winter Haven, 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 | $1,150 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $155,141 | 0.95% | C |
| 3BR | $2,020 | $285,821 | 0.71% | D |
| 4BR | $2,460 | $345,746 | 0.71% | D |
| 5BR | $2,854 | $427,352 | 0.67% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,200 for ZIP 33860 (Mulberry, FL) can sufficiently cover the mortgage on a home valued at $286,139. To assess this, we need to consider the typical mortgage payment for a property of that value. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly mortgage payment would be approximately $1,380. This means that the FMR of $1,200 falls short by about $180 per month, indicating that relying solely on FMR may not fully cover the mortgage payment.
The second objection concerns the level of renter demand, which stands at 30.7%. While this percentage suggests a moderate presence of renters, it does not guarantee high occupancy rates or strong competition among tenants. However, it's important to note that a higher percentage of renters doesn't necessarily correlate with increased rental income. The quality of the housing stock, local economic conditions, and the attractiveness of the area to potential residents also play significant roles. In Mulberry, FL, the rental market is stable but not highly competitive, which could pose a risk if the landlord aims to maximize occupancy.
Lastly, the investor may wonder if the Housing Choice Voucher program will keep pace with the market rents, currently estimated at $1,783. The voucher amount is set to $1,200, which is significantly lower than the market rent. This gap implies that landlords who accept vouchers may have to subsidize the difference, reducing their profit margins. It's worth noting that the voucher program is designed to help low-income families afford housing, and the disparity between the voucher amount and market rent reflects the broader challenge of affordability in the area. Landlords should weigh the benefits of participating in the voucher program, such as guaranteed rent payments and tax incentives, against the financial shortfall.
In conclusion, while ZIP 33860 presents opportunities for landlords and small-portfolio investors, the data highlights several challenges. The FMR does not fully cover the mortgage payment, the renter demand is moderate, and the voucher program does not align well with market rents. These factors suggest that careful consideration and strategic planning are necessary for successful investment in this area.
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.