Zillow’s Newspaper Consortium, founded in 2007 to allow newspaper sales teams to sell featured listings and ad inventory on Zillow.com to local real estate advertisers, has added co-branded Web sites to its offering.

The Tampa Tribune and 100 newspapers published by Community Newspaper Holdings, Inc. will be among the first newspaper websites to be powered by Zillow’s search technology. More co-braded sites are planned for launch later in 2009.

The deal gives the newspapers’ readers access to all Zillow functionality including Zestimates, Zillow Advice and the Zillow Mortgage Marketplace.

The Zillow Newspaper Consortium is made up of 11 major publishing companies, including Hearst Newspapers; Media General, Inc.; The E.W. Scripps Company; MediaNews Group; Community Newspaper Holdings, Inc; Morris Communications Company; and Philadelphia Media Holdings.

Zillow will now be competing with Trulia and its Publisher Platform. But with Zillow’s $87 million in funding, any battle should certainly be interesting.