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 | $1,790 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,890 | $248,180 | 0.76% | D |
| 2BR | $2,210 | $279,241 | 0.79% | D |
| 3BR | $2,870 | $414,702 | 0.69% | D |
| 4BR | $3,310 | $485,858 | 0.68% | D |
| 5BR | $3,840 | $937,419 | 0.41% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 33407, located in West Palm Beach, FL, reveals a competitive rental landscape. The HUD Fair Market Rent (FMR) for the area is set at $1960 per month for fiscal year 2024, while the actual market rent, as measured by Zillow's ZORI index, stands at $2,238 per month. This indicates that voucher tenants will only cashflow marginally at the FMR rate, as it falls below the market rent but still allows for a slight profit.
To further contextualize the investment potential, consider the median home value in the area, which is $346,986. Using this figure, we can calculate a rent-to-price ratio. With an average monthly rent of $2,238, the annual rent would be approximately $26,856. Dividing this by the median home value gives us a rent-to-price ratio of about 7.75%. This suggests that the rental income generated from properties in this area can provide a reasonable return relative to the purchase price.
In terms of the broader real estate market dynamics, the 45-day median Days on Market (DOM) and the 0.2% price-cut share indicate a relatively stable and seller-friendly market. These metrics suggest that homes are selling quickly without significant price reductions, which can be beneficial for investors looking to maintain property values and potentially see appreciation over time.
The strongest investor angle in ZIP 33407 is likely stability. Given the quick sales and minimal need for price adjustments, investors can expect consistent performance from their properties. While cashflow is present, it is marginal, and appreciation may vary; stability offers a reliable foundation for long-term investment success.
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.