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 | $2,620 |
| 1 Bedroom | $2,810 |
| 2 Bedrooms | $3,280 |
| 3 Bedrooms | $4,160 |
| 4 Bedrooms | $4,960 |
| 5 Bedrooms | $5,754 |
| 6 Bedrooms | $6,444 |
| 7 Bedrooms | $6,960 |
| 8 Bedrooms | $7,308 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,810 | $403,767 | 0.7% | D |
| 2BR | $3,280 | $689,263 | 0.48% | F |
| 3BR | $4,160 | $1,331,171 | 0.31% | F |
| 4BR | $4,960 | $2,109,903 | 0.24% | F |
| 5BR | $5,754 | $3,290,037 | 0.17% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 34242, located in Siesta Key, Florida, within the North Port-Bradenton-Sarasota MSA, reveals several key points for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 34242 in fiscal year 2024 is set at $2600. This figure represents the maximum amount that a low-income family should pay in rent. In contrast, the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $6,072. This significant gap between the FMR and market rent suggests that properties in this area can generate substantial income beyond what is considered fair market, assuming they meet the quality standards required by HUD.
The second question pertains to the affordability of acquiring property in this ZIP code. With a median home value of $834,671, the cost of entry is relatively high. However, the average days on market (DOM) of 58 days and a price-cut share of just 0.2% indicate that homes sell quickly and at close to their asking price, suggesting a strong seller's market where properties retain their value well.
The third question concerns tenant demand. ZIP 34242 has a population of 7,529, with only 9.6% being renters. This low renter share implies limited demand for rental properties, which could pose challenges for landlords seeking tenants. Despite the small number of potential renters, the high market rents suggest that those who do rent are willing to pay premium rates, which could offset some of the risks associated with lower overall demand.
In summary, while the rent math in ZIP 34242 does work favorably for landlords, with market rents significantly exceeding FMRs, the high median home value and limited renter share present a mixed picture. The strong seller's market indicates that acquisitions are likely to be profitable, but landlords must be prepared for potentially longer vacancy periods due to the low proportion of renters. For small-portfolio investors, the area offers opportunities for high returns if they can secure and retain tenants willing to pay premium rents.
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.