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 | $1,280 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,320 | $174,776 | 0.76% | D |
| 2BR | $1,540 | $220,380 | 0.7% | D |
| 3BR | $1,970 | $310,777 | 0.63% | D |
| 4BR | $2,390 | $377,797 | 0.63% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,560 for ZIP 34667 in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $276,803. The FMR represents the maximum amount that a landlord can charge for rent under the Section 8 program. To determine if this FMR is adequate, consider the typical mortgage payments for a property of this value. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a loan of $276,803 would be approximately $1,400. This means that the FMR of $1,560 would indeed cover the mortgage payment, leaving a buffer for maintenance and other expenses.
The second objection could be the low percentage of renters in the area, which stands at 23.0%. While this figure suggests a smaller pool of potential tenants, it's important to understand the local context. A lower rental percentage might indicate a higher rate of homeownership, but it does not necessarily mean a lack of demand. In fact, areas with high homeownership rates often see significant investment in rental properties due to their desirability. Furthermore, the rental vacancy rate and the number of available rental units can provide additional insight into the supply and demand dynamics. Without specific data on these metrics, we cannot conclusively state the level of demand, but the high FMR suggests that there is sufficient interest in renting properties in this ZIP code.
A final concern might be whether the voucher amounts will keep up with the market rents, currently averaging around $1,968. The gap between the FMR and market rents indicates that vouchers may not fully cover the cost of renting a market-priced property. However, landlords have the flexibility to set rents below market rates while still participating in the Section 8 program. By doing so, they can ensure that their rental income aligns with the voucher amounts, thereby avoiding financial strain. It's also worth noting that voucher holders often appreciate the stability and predictability of housing assistance, which can lead to long-term tenancy and reduced turnover costs for landlords.
In summary, while there are valid concerns regarding the adequacy of FMR for covering mortgage payments, the percentage of renters in the area, and the alignment of voucher amounts with market rents, the data suggests that ZIP 34667 offers a viable opportunity for landlords and small-portfolio investors. The FMR covers the mortgage, and the market rents indicate a strong demand for rental properties despite the relatively low percentage of renters. Vouchers, although not meeting market rents, can still support stable and long-term tenancies when used strategically.
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.