Location: North Port-Bradenton-Sarasota, FL | Metro: North Port-Bradenton-Sarasota, 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 | $1,790 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,840 |
| 4 Bedrooms | $3,390 |
| 5 Bedrooms | $3,932 |
| 6 Bedrooms | $4,404 |
| 7 Bedrooms | $4,756 |
| 8 Bedrooms | $4,994 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,240 | $1,264,104 | 0.18% | F |
| 3BR | $2,840 | $1,748,233 | 0.16% | F |
| 4BR | $3,390 | $2,661,825 | 0.13% | F |
| 5BR | $3,932 | $3,192,893 | 0.12% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 34216 in Florida provides a clear picture of potential rental income versus median home values. For the annualized Fair Market Rent (FMR) of a 2-bedroom apartment at $1930 per month, the implied gross yield can be calculated as follows:
The annual rent revenue would be $23,160 ($1930 x 12 months). Given the median home value in the area is $1,818,816, the implied gross yield is approximately 1.27%. This calculation is based on the formula: Gross Yield = (Annual Rent / Property Value) x 100.
However, the market rent for 2-bedroom apartments is listed as N/A, indicating that there might not be sufficient data to accurately assess the market rent scenario. If we assume that the market rent is higher than the FMR, the gross yield would naturally increase. But without specific figures, we cannot provide an exact percentage.
The 2.3% renter density in ZIP 34216 suggests a relatively low demand for rentals, which could impact the ability to consistently lease properties at either the FMR or higher market rates. Additionally, the N/A-day Days on Market (DOM) implies that there is limited data on how quickly rental properties are being leased, which could also affect the reliability of the FMR-based gross yield.
Given these factors, the FMR-based gross yield of 1.27% is the most concrete figure available. While it's possible that market rents could offer a better return, the lack of specific data makes it difficult to provide a definitive comparison. Landlords and small-portfolio investors should consider the low renter density and the uncertainty around market rents when evaluating the potential for Section 8 properties in this ZIP code.
In conclusion, the FMR-based gross yield of 1.27% provides a baseline for investment consideration in ZIP 34216. However, due to the low renter density and the absence of reliable market rent data, this yield may not fully reflect the actual performance of rental properties in this area. Investors should proceed with caution and conduct thorough local market research before making any investment decisions.
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.