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 | $2,640 |
| 1 Bedroom | $2,850 |
| 2 Bedrooms | $3,480 |
| 3 Bedrooms | $4,760 |
| 4 Bedrooms | $5,490 |
| 5 Bedrooms | $6,368 |
| 6 Bedrooms | $7,132 |
| 7 Bedrooms | $7,703 |
| 8 Bedrooms | $8,088 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,480 | $483,931 | 0.72% | D |
| 3BR | $4,760 | $670,255 | 0.71% | D |
| 4BR | $5,490 | $915,263 | 0.6% | F |
| 5BR | $6,368 | $1,514,730 | 0.42% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 33331, located in Southwest Ranches, FL, reveals a nuanced market condition that balances both yield and stability considerations. The Fair Market Rent (FMR) for ZIP 33331 in fiscal year 2024 is set at $3,150. This FMR is significantly lower than the market rent of $3,709, indicating a potential opportunity for landlords to secure rental properties at a discount compared to what they could charge. However, the median home value of $854,532 suggests that the area is predominantly residential with high property values, which can influence the overall cost structure for investors.
On the stability axis, ZIP 33331 presents a mixed picture. Only 17.4% of residents are renters, which implies a relatively low demand for rental properties. The lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out, but the average household income of $142,636 indicates a robust financial environment where tenants are likely to have the means to pay rent reliably. This strong income figure supports the notion of stable cash flows once a property is leased, despite the lower percentage of renters.
Given these factors, ZIP 33331 does not fit neatly into either a high-yield/low-stability 'flip-style' market or a steady-cashflow zone. Instead, it occupies a middle ground. The disparity between the FMR and market rent points towards a potentially lucrative investment opportunity, especially if landlords can find ways to lease properties at rates closer to the market average. However, the relatively low percentage of renters and the absence of DOM data caution against assuming quick turnover or a highly competitive rental market.
To summarize, while there is potential for above-average yields due to the favorable rent-to-value ratio, the market's stability is somewhat compromised by the limited rental population. Nonetheless, the high average income provides a solid foundation for dependable tenant payments. For landlords and small-portfolio investors, this suggests a market that requires careful selection of properties and strategic pricing to maximize returns while maintaining a stable income stream.
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.