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 | $1,380 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $220,757 | 0.75% | D |
| 3BR | $2,120 | $300,830 | 0.7% | D |
| 4BR | $2,580 | $349,236 | 0.74% | D |
| 5BR | $2,993 | $383,020 | 0.78% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,730 for ZIP code 34669 (Hudson, FL) in fiscal year 2024 will sufficiently cover the mortgage on a median-priced home valued at $313,586. This concern arises from the fact that FMR is designed to be affordable for low-income families, often falling below the average market rent. To address this, it's important to consider the specific terms of the mortgage, such as interest rates and loan duration, which are not provided here. However, based on historical data, an FMR of $1,730 could potentially cover a portion of the monthly mortgage payment, but likely not the entire amount without additional income sources or subsidies.
The second objection is regarding the level of renter demand, which stands at 11.9% in Hudson, FL. This percentage suggests that a significant portion of the housing stock is rented out, but it does not indicate the strength of demand relative to supply. While 11.9% might seem low, it is crucial to understand the local rental market dynamics. If the supply of rental properties is limited, this percentage could still represent a robust demand. Additionally, the rental vacancy rate, which is not provided, would give insight into how competitive the rental market is. A lower vacancy rate typically indicates higher demand.
Lastly, an investor might wonder if HUD vouchers will keep up with the market rents, currently averaging $2,127. The voucher amounts are adjusted annually based on local housing costs, but they rarely match the full market rent. In ZIP 34669, landlords participating in the voucher program can expect to receive a subsidy close to the FMR of $1,730, which leaves a shortfall when compared to the average market rent. Landlords must decide if the additional administrative ease and guaranteed payment from the voucher program outweigh the reduced rent revenue.
To conclude, while the data presents some challenges for landlords and small-portfolio investors in ZIP 34669, it also highlights opportunities. Careful analysis of local market conditions, understanding the specifics of mortgage payments, and weighing the benefits and drawbacks of accepting HUD vouchers are essential steps for making informed investment decisions.
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.