Section 8 Fair Market Rent (FMR) for ZIP 34655 - 2027

Investment Score for ZIP 34655

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,770
1 Bedroom	$1,830
2 Bedrooms	$2,130
3 Bedrooms	$2,720
4 Bedrooms	$3,310
5 Bedrooms	$3,840
6 Bedrooms	$4,301
7 Bedrooms	$4,645
8 Bedrooms	$4,877

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,130	$223,919	0.95%	C
3BR	$2,720	$382,691	0.71%	D
4BR	$3,310	$520,388	0.64%	D
5BR	$3,840	$615,167	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 34655 (New Port Richey, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 34655 is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1790 - 1BR: $1900 - 2BR: $2220 (which is 31.2% of the median household income) - 3BR: $2840 - 4BR: $3460 To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and renter percentage. With an occupancy rate of 93.9%, the market is relatively tight, indicating that there is a high demand for rental properties. However, only 23.5% of the population are renters, suggesting that the majority of residents own their homes. This implies that the rental market might be smaller compared to the overall housing market. For voucher holders, the constraints are significant. The FMR for a 2BR unit is $2220, which is already a substantial portion of the median household income ($85,470). This means that voucher holders must find units priced at or below this amount, which can be challenging given the tight market conditions and the fact that many landlords may prefer higher-paying tenants who do not use vouchers. #### Affordability & Renter Profile The median household income in ZIP code 34655 is $85,470. Given that the FMR for a 2BR unit is $2220, which represents 31.2% of the median income, it suggests that the market is moderately affordable for those on lower incomes. However, the price-to-FMR ratio for a 2BR unit is 8.5x, meaning that the median home value is significantly higher than the FMR. This indicates that the rental market is much more affordable compared to the overall housing market. The renter profile in this area is likely to include individuals and families who are either young professionals, retirees, or those on fixed incomes such as social security or disability benefits. The high occupancy rate suggests that there is strong demand for rental properties, but the low renter percentage indicates that the rental market is not as large as other markets with higher percentages of renters. Given the tight market conditions, it is likely that competition among renters is high, making it difficult for voucher holders to secure units. Landlords may also be hesitant to accept vouchers due to the administrative burden and the potential for delays in payment. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash flow-positive opportunities at the FMR levels. To determine this, we need to consider the costs associated with owning and managing rental properties, including mortgage payments, property taxes, insurance, maintenance, and vacancy rates. Assuming a typical mortgage payment of around $1000 per month for a 2BR unit, along with property taxes of approximately $200 per month, insurance of about $100 per month, and maintenance costs of $50 per month, the total monthly cost would be around $1350. At the FMR of $2220 for a 2BR unit, this leaves a potential net operating income (NOI) of $870 per month, before accounting for vacancy rates and other expenses. The investment grade for this ZIP code can be assessed based on the NOI and the overall demand for rental properties. Given the tight market and high occupancy rate, the risk of vacancy is relatively low, which is favorable for investors. However, the challenge lies in finding tenants who can afford the FMR, especially since the FMR is already a significant portion of the median income. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have FMRs of $1790 and $1900 respectively, which are more likely to be affordable for voucher holders. Additionally, smaller units tend to have lower maintenance and management costs, improving the overall cash flow. 2. **Target Areas with Higher Renter Concentration**: While the overall renter percentage is 23.5%, certain neighborhoods within ZIP code 34655 may have a higher concentration of renters. Investors should conduct further research to identify these areas and target them for investment. This could involve analyzing local demographics, job markets, and school districts to pinpoint where renters are most likely to be concentrated. 3. **Consider Multi-family Properties**: Multi-family properties offer economies of scale, reducing the per-unit cost of ownership and management. An apartment complex with multiple 0BR and 1BR units could provide a steady stream of income while minimizing the impact of any single tenant’s departure. For example, a 10-unit complex with 0BR and 1BR units could generate a combined monthly income of $18,400, assuming full occupancy. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors is to **Hold**. While there are opportunities for cash flow-positive investments, particularly in smaller units, the challenges of finding tenants who can afford the FMR and the administrative burden of accepting vouchers make this ZIP code less attractive for new investors. Existing investors with properties already in the area may benefit from the tight market conditions, but new investors should carefully evaluate the risks and consider alternative markets with higher renter concentrations and lower price-to-FMR ratios.

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.