Location: West Palm Beach-Boca Raton, FL | Metro: West Palm Beach-Boca Raton, 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 | $1,870 |
| 1 Bedroom | $1,970 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,450 |
| 5 Bedrooms | $4,002 |
| 6 Bedrooms | $4,482 |
| 7 Bedrooms | $4,841 |
| 8 Bedrooms | $5,083 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,970 | $281,631 | 0.7% | D |
| 2BR | $2,300 | $461,594 | 0.5% | F |
| 3BR | $2,990 | $718,406 | 0.42% | F |
| 4BR | $3,450 | $1,425,671 | 0.24% | F |
| 5BR | $4,002 | $2,410,508 | 0.17% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 33401, located in West Palm Beach, FL, stands at $67,967. This figure places significant constraints on the average household's ability to pay the $2,666 market rate for rent, commonly referred to as ZORI (Zillow Rent Index). The market rate is notably higher than the Fair Market Rent (FMR), which is set at $2,150 for the fiscal year 2024, indicating a substantial gap between what the market demands and what the government deems affordable.
With 62.5% of the population renting and a total population of 33,698, the competition among landlords is fierce. The discrepancy between the ZORI and the FMR suggests that many tenants might find it challenging to afford market-rate rents without assistance. For landlords, this means that relying solely on cash-paying tenants could limit their pool of potential renters, especially those who are price-sensitive.
The affordability gap highlights the importance of considering both voucher and cash-pay strategies. While voucher payments are lower at $2,150, they ensure a steady stream of income and reduce the risk of non-payment. On the other hand, cash-pay tenants might offer higher rental rates but come with greater financial uncertainty. Landlords should weigh these factors carefully when deciding how to structure their rental offerings.
In summary, landlords in ZIP 33401 must be strategic. They should consider accepting vouchers to attract a broader range of tenants and secure stable income, while also keeping an eye on the possibility of renting to cash-paying tenants willing to meet the $2,666 market rate. This dual approach can help navigate the competitive landscape and cater to the diverse needs of the local rental market.
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.