Location: Fort Lauderdale, FL | Metro: Fort Lauderdale, FL HUD Metro FMR Area
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 | $1,890 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,500 |
| 3 Bedrooms | $3,420 |
| 4 Bedrooms | $3,940 |
| 5 Bedrooms | $4,570 |
| 6 Bedrooms | $5,118 |
| 7 Bedrooms | $5,527 |
| 8 Bedrooms | $5,803 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,050 | $309,639 | 0.66% | D |
| 2BR | $2,500 | $499,933 | 0.5% | F |
| 3BR | $3,420 | $914,054 | 0.37% | F |
| 4BR | $3,940 | $1,198,812 | 0.33% | F |
| 5BR | $4,570 | $2,276,385 | 0.2% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 33019, which encompasses parts of Hollywood, Florida, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2310, whereas the Zillow Rent Index (ZORI) indicates a market rent of $3275. This discrepancy amounts to a difference of $965 per month, or approximately 42%, highlighting the cost implications for landlords and small-portfolio investors.
The disparity between the FMR and the market rent suggests that landlords who participate in the Section 8 program will be renting their properties below the open-market rates. In Hollywood, Florida, where 24.0% of residents are renters, and the median home value stands at $507,331, the median household income is $96,497. These figures provide a backdrop against which the financial viability of Section 8 participation can be assessed.
Given that the FMR is less than the market rent, landlords must consider the costs associated with housing voucher tenants. The lower rent payments could result in reduced cash flow compared to what might be achieved in the open market. However, the stability and security of having the government back rental payments through vouchers can offset some of these risks. Landlords should also factor in the potential for higher vacancy rates if they choose to list their properties above the FMR, which could further impact their overall yield.
To summarize, the gap between the FMR and the market rent in ZIP 33019 presents a challenge for landlords aiming to maximize their investment returns. While the Section 8 program offers a steady income stream, it also comes with the trade-off of receiving rents that are significantly below the local market rate. This analysis underscores the importance of carefully weighing the benefits and drawbacks of participating in the Section 8 program within the specific economic context of Hollywood, Florida.
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.