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 | $1,320 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,450 |
| 5 Bedrooms | $2,842 |
| 6 Bedrooms | $3,183 |
| 7 Bedrooms | $3,438 |
| 8 Bedrooms | $3,610 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,360 | $125,854 | 1.08% | B |
| 2BR | $1,580 | $248,613 | 0.64% | D |
| 3BR | $2,020 | $415,510 | 0.49% | F |
| 4BR | $2,450 | $543,816 | 0.45% | F |
| 5BR | $2,842 | $806,937 | 0.35% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 34689, which encompasses Tarpon Springs, FL, within Pinellas County, can be analyzed based on the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1530 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the local housing market conditions more accurately than broader regional averages.
Local market rents, as indicated by ZORI (Zillow Observed Rent Index), stand at $2,303 for a similar two-bedroom unit. This comparison reveals a significant difference between the market rent and the SAFMR, which landlords should consider when deciding whether to participate in the Section 8 program.
To understand what a voucher actually pays, it's essential to factor in both the tenant portion and utility allowances. Typically, the tenant contributes approximately 30% of their adjusted income towards rent, while the remaining balance is covered by the voucher. For instance, if a tenant's adjusted monthly income is $1000, they would pay $300 toward rent, leaving $1230 to be reimbursed by the Section 8 program.
In addition to the rent subsidy, utility allowances are also provided. These vary but generally cover a portion of the tenant's electricity, gas, water, and sewer costs. In ZIP 34689, the utility allowance for a two-bedroom apartment might average around $200 per month, depending on the specifics of the property and the tenant's usage.
Therefore, the total amount a landlord would receive from a Section 8 voucher for a two-bedroom apartment in ZIP 34689 would be the sum of the tenant contribution and the utility allowance, capped at the SAFMR of $1530. If the tenant's share plus the utility allowance exceeds $1530, the reimbursement will be limited to this amount.
This structure creates a reimbursement gap for landlords, given that the local market rent is significantly higher than the SAFMR. In ZIP 34689, landlords face a reimbursement shortfall of $773 per month ($2,303 - $1530) for a two-bedroom unit, meaning they must accept a lower rental income compared to the market rate or find alternative ways to manage this financial discrepancy.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.