Section 8 Fair Market Rent (FMR) for ZIP 33068 - 2027

Investment Score for ZIP 33068

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,870
1 Bedroom	$2,020
2 Bedrooms	$2,470
3 Bedrooms	$3,380
4 Bedrooms	$3,900
5 Bedrooms	$4,524
6 Bedrooms	$5,067
7 Bedrooms	$5,472
8 Bedrooms	$5,746

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,020	$116,743	1.73%	A+
2BR	$2,470	$261,163	0.95%	C
3BR	$3,380	$400,765	0.84%	C
4BR	$3,900	$465,664	0.84%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33068 (North Lauderdale, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 33068 in North Lauderdale, FL, are as follows for 2026: - 0BR: $1850 - 1BR: $2030 - 2BR: $2490 (which is 46.7% of the median household income) - 3BR: $3430 - 4BR: $4070 These FMRs represent the maximum rent that a Section 8 voucher holder can pay for a unit in this area. However, it is important to note that these figures are based on market averages and may not reflect the actual rents charged by landlords. The FMR for a 2BR unit is $2490, which is significantly lower than the Zillow median price of $259,522 for a similar-sized home. This indicates that the rental market is much more affordable compared to the purchase market, but still poses challenges for voucher holders who must find units within their budget. One key constraint for voucher holders is the limited number of units available at or below the FMR. Landlords may be hesitant to accept vouchers due to the perception of increased administrative burden and potential delays in payment. Additionally, the occupancy rate of 94.8% suggests that there is little vacancy in the market, making it difficult for voucher holders to find suitable housing. #### Affordability & Renter Profile The median household income in North Lauderdale is $64,051, and 37.1% of the population are renters. Given that the FMR for a 2BR unit is 46.7% of the median income, it is clear that many residents, particularly those relying on Section 8 vouchers, face significant affordability challenges. The high occupancy rate of 94.8% implies that the rental market is relatively tight, with few vacant units available. This tightness can lead to higher rents and competition among tenants, especially those without vouchers. For voucher holders, the challenge is compounded by the need to find units within the FMR limits. The price-to-FMR ratio of 8.7x for a 2BR unit further underscores the disparity between the cost of ownership and rental, indicating that the rental market is competitive and potentially overpriced relative to the FMR. #### Investor Angle From an investor perspective, the ZIP code 33068 presents a mixed picture. The FMR for a 2BR unit is $2490, which is well below the Zillow median price of $259,522. This suggests that the rental market is more affordable than the purchase market, but it also means that investors might struggle to achieve positive cash flow if they are pricing their units close to the FMR. To determine if the ZIP is cash-flow positive at FMR, we need to consider other factors such as property taxes, insurance, maintenance costs, and mortgage payments (if applicable). Assuming a typical cash flow scenario where expenses like taxes and insurance amount to about 30% of the gross rent, the net rent would be approximately $1743 per month for a 2BR unit. This is still a significant amount, but it needs to be compared against the total monthly expenses to ascertain profitability. Given the high occupancy rate and the tight rental market, there is likely strong demand for rental properties. However, the price-to-FMR ratio of 8.7x indicates that the market is not aligned with the FMR, suggesting that investors might have difficulty finding tenants willing to pay the FMR. This could result in either lower occupancy rates or the need to offer concessions to attract tenants. The investment grade for this ZIP code would depend on the ability to secure long-term tenants and manage the property effectively. With the high occupancy rate, there is a good chance of maintaining steady tenancy, but the risk lies in the potential mismatch between the FMR and the actual market rents. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should target properties that can be rented below the FMR to ensure they are attractive to voucher holders. For example, a 2BR unit priced at $2200 per month would be more likely to attract a Section 8 tenant than one priced at $2490. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and the tight rental market, multi-family properties may provide better opportunities for positive cash flow. These properties can spread out fixed costs like property taxes and insurance across multiple units, potentially improving the overall financial performance. 3. **Engage with Local Housing Authorities**: To increase the likelihood of securing Section 8 tenants, investors should engage with local housing authorities to understand the process and requirements for accepting vouchers. This can help mitigate some of the perceived risks and administrative burdens associated with voucher programs. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 33068 is to **Hold**. While the rental market is tight and there is strong demand, the high price-to-FMR ratio and the potential difficulty in finding units that fit within the FMR constraints make it challenging to achieve positive cash flow. Engaging with local housing authorities and focusing on units priced slightly below the FMR can help improve the chances of success, but investors should proceed with caution and carefully evaluate their financial projections before committing to purchases in this area.

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.