Section 8 Fair Market Rent (FMR) for ZIP 33402 - 2027
Location: West Palm Beach-Boca Raton, FL | Metro: West Palm Beach-Boca Raton, FL HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,910 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,520 |
| 5 Bedrooms | $4,083 |
| 6 Bedrooms | $4,573 |
| 7 Bedrooms | $4,939 |
| 8 Bedrooms | $5,186 |
When considering whether to invest in ZIP code 33402 for Section 8 properties, follow these steps:
- Step 1: Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for ZIP 33402 in fiscal year 2024 is set at $2230. To determine if this amount clears the debt service on a property, you must calculate the DSCR using the property's expected rental income and total debt service. Without specific property details, it's impossible to definitively say yes or no. However, if your property's total monthly debt service is less than $2230, then the answer is yes.
- Step 2: Market Rent Comparison: The current market rent in ZIP 33402 is not specified, making it difficult to compare against the FMR of $2230. If market rents are higher, you can still attract non-Section 8 tenants who might be willing to pay more. If market rents are equal to or lower than the FMR, you're likely to find that Section 8 covers most or all of the rental market, which means the answer is yes.
- Step 3: Rental Demand Analysis: The percentage of renters and the days on market (DOM) are not provided for ZIP 33402. Generally, if the percentage of renters is high and the DOM is low, there is strong demand for rental properties. This would mean the answer is yes. Conversely, if the percentage of renters is low and DOM is high, demand is weak, leading to a no.
To make a final decision, you need to answer the following questions:
- If the FMR of $2230 covers your debt service, proceed to Step 2.
- If market rents are higher than the FMR, consider diversifying your tenant base; otherwise, proceed to Step 3.
- If there is sufficient rental demand, then investing in ZIP 33402 for Section 8 properties is viable. Otherwise, it is not recommended.
Note: The lack of specific data points such as market rent, percentage of renters, and DOM makes a precise recommendation challenging. Ensure you gather detailed local market data before making any investment decisions.
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.