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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,480 | $441,814 | 0.79% | D |
| 3BR | $4,760 | $715,703 | 0.67% | D |
| 4BR | $5,490 | $999,775 | 0.55% | F |
| 5BR | $6,368 | $1,358,389 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 33332 in Weston, Florida, provides valuable insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom unit in fiscal year 2024 is set at $3150 annually, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $5,061 per year. Using these figures against the median home value of $1,025,527, we can derive the implied gross yields for both scenarios.
In the case of using the Section 8 FMR, the annualized rental income would be $3150. This translates to an implied gross yield of approximately 0.31%. The calculation is straightforward: divide the annual rental income by the median home value. For the market rent scenario, with an annualized rental income of $5,061, the implied gross yield rises to about 0.50%.
The gross yield derived from the market rent is more realistic when considering the local rental market conditions. Despite the low renter density of 13.3%, the market rent reflects the actual demand and willingness to pay higher rents. The N/A-day Days on Market (DOM) suggests that rental listings in this area either sell quickly or there isn't enough data to provide an accurate average, indicating strong demand for rentals.
While the Section 8 FMR scenario offers a stable income stream due to government backing, it significantly underestimates the property's earning potential relative to the market. Investors should consider the broader real estate context and the fact that only a portion of properties might be suitable for Section 8 tenancy. Given the high median home value and the robust rental market, relying on the market rent figure for investment analysis is advisable.
To summarize, the gross yield based on the Section 8 FMR is 0.31%, whereas the gross yield based on market rent is 0.50%. The latter provides a more accurate representation of potential returns, aligning better with the local real estate market dynamics.
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.