Location: Fort Lauderdale, FL | Metro: Fort Lauderdale, FL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,760 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $3,170 |
| 4 Bedrooms | $3,660 |
| 5 Bedrooms | $4,246 |
| 6 Bedrooms | $4,756 |
| 7 Bedrooms | $5,136 |
| 8 Bedrooms | $5,393 |
The Section 8 cap-rate analysis for ZIP code 33093 in Florida reveals some critical insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for fiscal year 2024 is set at $2100 annually. However, the median home value and market rent data are currently unavailable, which complicates a full analysis.
To derive the rough cap-rate picture, we need to consider the fair market rent in relation to potential property values. In the absence of a specific median home value, let's assume a median home value for the purpose of illustration. For instance, if the median home value were $250,000, the annualized FMR of $2100 would imply a gross yield of approximately 0.84%. This is calculated by dividing the annual rental income ($2100) by the property value ($250,000).
In contrast, without market rent data, it's challenging to provide an accurate comparison. If the market rent were higher, say $2500 annually, and assuming the same median home value of $250,000, the gross yield would be about 1%. This scenario would suggest a slightly better return on investment compared to the FMR-based scenario.
Given the lack of precise data on renter density and days on market (DOM), it's difficult to determine which scenario is more realistic. However, the higher market rent scenario would generally be more favorable for landlords and investors looking to maximize returns. The key takeaway is that the gross yield based on FMR is lower, indicating a potentially less profitable investment under Section 8 guidelines.
Investors should use these figures as a starting point and conduct further research into local rental markets and property values to refine their investment decisions. The availability of more detailed data such as actual market rents and property values would help in making a more informed decision regarding the potential profitability of properties in ZIP 33093.
Data Sources: FMR data from HUD (2027).
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.