Location: Fort Lauderdale, FL | Metro: Fort Lauderdale, FL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,940 |
| 1 Bedroom | $2,100 |
| 2 Bedrooms | $2,560 |
| 3 Bedrooms | $3,500 |
| 4 Bedrooms | $4,040 |
| 5 Bedrooms | $4,686 |
| 6 Bedrooms | $5,248 |
| 7 Bedrooms | $5,668 |
| 8 Bedrooms | $5,951 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP 33317 (Plantation, FL) for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $2,140 cover the debt service on a property valued at $537,882?
No. The FMR of $2,140 does not sufficiently cover the debt service on a property priced at $537,882. Debt service includes mortgage payments, insurance, taxes, and maintenance costs, which typically exceed the FMR amount for such a high-value property. Landlords seeking to participate in the Section 8 program would need to ensure that their total rental income, including non-Section 8 tenants, meets their financial obligations.
It depends. For a landlord who owns multiple properties and has a diversified portfolio, the FMR might be acceptable if the overall income from other units or sources covers the shortfall. However, for a single-property investment, the FMR is unlikely to be sufficient.
2) How does the market rent ($2,619 ZORI) compare to the FMR?
Market rent is above FMR. The ZORI (Zillow Rent Index) of $2,619 indicates that the market rent is higher than the FMR of $2,140. This suggests that landlords can potentially earn more from market-rate tenants than those participating in the Section 8 program.
Market rent is at FMR. If the market conditions change and the ZORI aligns with the FMR, landlords will receive rents comparable to the FMR. In this scenario, the decision to invest should focus on the demand for Section 8 housing and the potential for stable, government-backed income.
Market rent is below FMR. This situation is unlikely given the current ZORI of $2,619, but if it were to occur, it would indicate an opportunity for landlords to participate in the Section 8 program without sacrificing profitability relative to market rates.
3) Is there enough demand with 24.0% of the population renting and an average Days on Market (DOM) of 44 days?
Yes. With 24.0% of the population renting and a relatively low DOM of 44 days, there is sufficient demand for rental properties in Plantation, FL. This indicates that landlords can expect a steady stream of tenants, both Section 8 and market-rate, ensuring occupancy and income stability.
No. If the percentage of renters drops significantly or the DOM increases substantially, the demand for rental properties would decrease. Under these conditions, landlords would face challenges in maintaining occupancy and generating consistent income.
It depends. A moderate change in either the percentage of renters or the DOM could still support a Section 8 investment, provided that the landlord can balance the lower FMR with market-rate tenants or other revenue streams.
Given the specific data points, a landlord interested in ZIP 33317 should carefully consider the financial viability of a Section 8 property against their broader investment strategy and the potential for market-rate rentals to offset any shortfalls.
Data Sources: FMR data from HUD (2027). 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.