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 | $1,900 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,510 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $3,960 |
| 5 Bedrooms | $4,594 |
| 6 Bedrooms | $5,145 |
| 7 Bedrooms | $5,557 |
| 8 Bedrooms | $5,835 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,060 | $128,684 | 1.6% | A+ |
| 2BR | $2,510 | $313,172 | 0.8% | C |
| 3BR | $3,430 | $501,476 | 0.68% | D |
| 4BR | $3,960 | $764,242 | 0.52% | F |
| 5BR | $4,594 | $1,004,427 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 real estate analysis for ZIP code 33026, located in Pembroke Pines, 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 $2490, while the Zillow Observed Rent Index (ZORI) shows the market rent to be $2783. This represents a gap of $293, or approximately 11.76%, between what voucher tenants can pay and the open-market rental rate.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the costs associated with accepting housing vouchers. The difference of $293 per month means that landlords will need to subsidize the remaining amount to meet market standards, which can impact their overall cash flow and investment returns. This subsidy is necessary because the government does not adjust the voucher amounts to match local market conditions fully.
In the context of Pembroke Pines, where only 16.8% of residents are renters, and the median home value stands at $447,038 with a median income of $89,306, the decision to accept Section 8 tenants involves balancing the benefits of stable, government-backed rental income against the potential drawbacks of lower rents compared to the open market. Landlords must weigh these factors carefully to ensure that they are making a sound financial decision that aligns with their investment goals.
The gap also highlights the importance of understanding the local rental market dynamics. While the FMR provides a benchmark for affordability, it is crucial for investors to consider the broader economic landscape of Pembroke Pines. With a relatively high median home value and income levels, the area may attract a diverse range of tenants, including those seeking subsidized housing. However, the disparity between the FMR and market rent underscores the necessity for careful financial planning when dealing with voucher tenants.
To summarize, the $293 gap between the FMR and market rent in ZIP 33026 presents both opportunities and challenges for landlords. It offers a chance to serve a segment of the population that might otherwise struggle to find affordable housing, but it also requires an additional financial commitment to maintain competitive rental offerings in the local market.
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.