Location: Tampa-St. Petersburg-Clearwater, FL | Metro: Tampa-St. Petersburg-Clearwater, 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 | $1,260 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $220,137 | 0.69% | D |
| 3BR | $1,930 | $319,682 | 0.6% | D |
| 4BR | $2,340 | $351,261 | 0.67% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 34604, located in Brooksville, FL, within the Tampa-St. Petersburg-Clearwater, FL MSA, reveals several key points regarding the financial viability of voucher tenants. The HUD Fair Market Rent (FMR) for the area is set at $1,520 for fiscal year 2024, while the market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,787.
This comparison suggests that voucher tenants will cashflow at the FMR rate, but only marginally. Landlords can expect to see a slight shortfall of approximately $267 per unit, unless they focus on premium units where rents might be closer to the FMR. This margin is tight, indicating that landlords must carefully manage expenses and consider the cost of maintaining properties to ensure profitability.
The median home value in ZIP 34604 is $330,964. Using this figure, we can calculate the rent-to-price ratio, which is an important metric for understanding the relationship between rental income and property values. In this case, the ratio is roughly 0.5%, derived by dividing the annual market rent ($21,444) by the median home value. This ratio indicates that rental income alone may not cover the full mortgage payment on a typical home in the area, especially when considering the slight shortfall due to voucher rates.
The dynamics of the local real estate market further support the need for careful consideration. With a median Days on Market (DOM) of N/A and a price-cut share of 0.3%, it's clear that the buy side of the market is stable, but this does not necessarily translate into strong rental demand or higher rents. Therefore, investors should be cautious about relying solely on appreciation or stability as their primary investment strategy.
In conclusion, the strongest angle for Section 8 investors in ZIP 34604 is likely to be stability. While cashflow is marginal and appreciation potential is limited, the consistent demand for affordable housing and the predictability of government-backed vouchers provide a reliable source of income and occupancy. This makes stability a compelling argument for those looking to invest in this market.
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.