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 | $1,720 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,630 |
| 4 Bedrooms | $3,200 |
| 5 Bedrooms | $3,712 |
| 6 Bedrooms | $4,157 |
| 7 Bedrooms | $4,490 |
| 8 Bedrooms | $4,715 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,770 | $149,558 | 1.18% | B |
| 2BR | $2,060 | $300,631 | 0.69% | D |
| 3BR | $2,630 | $509,566 | 0.52% | F |
| 4BR | $3,200 | $725,690 | 0.44% | F |
| 5BR | $3,712 | $1,023,662 | 0.36% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 34698, Dunedin, FL, provides a clear picture of potential investment yields based on Fair Market Rent (FMR) and market rent figures. For a two-bedroom property, the annualized FMR is $1920 per month, which equates to an annual rental income of $23,040. Given the median home value of $407,275, the implied gross yield from the FMR scenario is approximately 5.65%. This calculation is derived by dividing the annual rental income by the median home value.
In contrast, using the Zillow Observed Rental Index (ZORI), the market rent for a similar two-bedroom property is $2,130 per month, resulting in an annual rental income of $25,560. The implied gross yield from this market rent scenario is approximately 6.28%. This figure is also calculated by dividing the annual rental income by the median home value.
The difference between these two gross yields highlights the variability in rental income that could be achieved under different conditions. The FMR yield of 5.65% represents a conservative estimate, while the market rent yield of 6.28% reflects a more optimistic outlook.
Given the 26.6% renter density in ZIP 34698, it is evident that a significant portion of the population relies on rental housing, including those eligible for Section 8 assistance. Additionally, the Days on Market (DOM) statistic of 37 days indicates a relatively quick turnover rate for rental properties, suggesting strong demand. However, the FMR scenario is more realistic for Section 8 investments due to the fixed nature of the subsidy amounts. While the market rent scenario offers a higher gross yield, landlords participating in the Section 8 program must adhere to the set FMR rates.
Therefore, for a landlord or small-portfolio investor considering Section 8 participation in ZIP 34698, the expected gross yield would be closer to the 5.65% derived from the FMR rather than the 6.28% from the market rent. This yield should be factored into broader investment considerations, such as property management costs, vacancy rates, and maintenance expenses, to determine the net operating income and overall viability of the investment.
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.