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 | $1,270 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $241,149 | 0.63% | D |
| 3BR | $1,950 | $292,585 | 0.67% | D |
| 4BR | $2,380 | $333,140 | 0.71% | D |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 34606, located in Timber Pines, FL, within Hernando County and the Tampa-St. Petersburg-Clearwater, FL MSA, presents a unique opportunity for landlords and small-portfolio investors. According to the latest HUD Fair Market Rent (FMR) data for fiscal year 2024, the FMR for this area is set at $1,560. In comparison, the market rent, represented by the Zillow Observed Rental Index (ZORI), stands at $1,848. This indicates that voucher tenants will only cashflow on premium units, as the FMR is significantly lower than the market rent.
To further analyze the investment potential, consider the median home value in the area, which is $274,284. The rent-to-price ratio can be calculated by dividing the annual market rent ($1,848 * 12 = $22,176) by the median home value. This results in a ratio of approximately 0.081, or 8.1%. This relatively low ratio suggests that rental income alone may not fully justify the purchase price of a property, making it essential for investors to focus on premium units to achieve positive cash flow.
The rental market dynamics also reveal insights into the buy-versus-rent scenario. With a median Days on Market (DOM) of 37 days and a price-cut share of just 0.3%, the rental market is competitive, indicating strong demand for rental properties. However, these metrics do not directly impact the decision for Section 8 investors, who must rely on the FMR to determine their financial viability.
The strongest investor angle in ZIP 34606 is stability. Despite the challenge of achieving cash flow with standard units, the consistent demand for rentals and the stable median home values provide a solid foundation for long-term investments. Investors should focus on premium units to ensure they can maintain positive cash flow while benefiting from the area's stable housing 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.