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 | $1,970 |
| 1 Bedroom | $2,030 |
| 2 Bedrooms | $2,360 |
| 3 Bedrooms | $3,010 |
| 4 Bedrooms | $3,660 |
| 5 Bedrooms | $4,246 |
| 6 Bedrooms | $4,756 |
| 7 Bedrooms | $5,136 |
| 8 Bedrooms | $5,393 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,360 | $246,995 | 0.96% | C |
| 3BR | $3,010 | $463,705 | 0.65% | D |
| 4BR | $3,660 | $725,951 | 0.5% | F |
| 5BR | $4,246 | $907,435 | 0.47% | F |
U.S. Census Bureau data (2024)
ZIP 34685, located in Palm Harbor, FL, within the Tampa-St. Petersburg-Clearwater MSA, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The primary reason for this classification lies in the favorable financial metrics that indicate strong rental income potential.
The Fair Market Rent (FMR) for ZIP 34685 in fiscal year 2024 is set at $2180. This figure represents the maximum amount that a landlord can charge for a Section 8 voucher tenant. In contrast, the market rent for the same area stands at $1996. This means that landlords participating in the Section 8 program can command a premium of $184 per unit over the market rate, ensuring a solid cash flow advantage.
Furthermore, the median home value in ZIP 34685 is $482,638. While this is a significant investment, the high FMR spread ensures that landlords can cover mortgage payments and other expenses while still maintaining positive cash flow. The stability of Section 8 vouchers, which are guaranteed by the federal government, adds another layer of security to the cash flow, making this ZIP code a reliable choice for landlords seeking consistent returns.
While ZIP 34685 also offers some potential as an appreciation play, with a 0.3% price-cut share and an average days on market (DOM) of 44 days, these factors are secondary to its role as a cash-flow anchor. The relatively low price-cut share indicates that property values are holding steady, but the primary focus should be on the immediate rental income potential.
Lastly, ZIP 34685 can serve as a diversifier due to its 23.1% renter share and median income of $94,688. However, given the strong financials that support cash flow, this aspect is less critical for a Section 8-focused strategy. Landlords should prioritize the ZIP code's ability to generate stable and predictable rental income, making it a valuable component of their portfolio.
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.