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 | $1,500 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,580 | $328,672 | 0.48% | F |
| 2BR | $1,850 | $570,471 | 0.32% | F |
| 3BR | $2,400 | $345,108 | 0.7% | D |
| 4BR | $2,770 | $437,869 | 0.63% | D |
| 5BR | $3,213 | $628,820 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 33404, located in Riviera Beach, FL, presents a significant opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the Zillow Rent Index (ZORI). The FMR for ZIP 33404 in fiscal year 2024 is set at $1670, while the ZORI, reflecting the market rent, stands at $2,432. This results in a gap of $762 per month, or approximately 31%, between what the government deems as fair market rent and the actual rental prices commanded in the area.
In Riviera Beach, where 40.0% of residents are renters and the median home value is $423,285, the median income of $65,063 makes it challenging for many to afford the high market rents. For landlords, accepting Section 8 tenants can be seen as a strategic decision to ensure occupancy in a competitive market. However, the downside is that they must accept a lower rental rate compared to the open market, which can impact their overall yield and profitability.
The cost of housing voucher tenants below open-market rates means that landlords might have to adjust their expectations regarding rental income. While the guaranteed payment from the government reduces risk, the difference of $762 per unit could represent a substantial loss over a year, especially when considering the total number of units in a portfolio. This gap highlights the trade-off between securing a steady tenant base and maximizing rental revenue.
To illustrate, if an investor owns a property with five units in ZIP 33404, accepting Section 8 tenants would mean foregoing $3,810 per month in potential rental income, or $45,720 annually. This figure underscores the financial implications of choosing to participate in the Section 8 program. Despite these costs, the program offers benefits such as reduced vacancy rates and stable cash flow, making it a viable option for certain investment strategies.
Given the local context, landlords should weigh the advantages of having reliable tenants against the lower rental rates. In a market where competition is fierce and median incomes are relatively low, Section 8 vouchers provide a lifeline for many potential tenants, ensuring that properties remain occupied even during economic downturns.
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.