Location: West Palm Beach-Boca Raton, FL | Metro: West Palm Beach-Boca Raton, FL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,970 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $3,140 |
| 4 Bedrooms | $3,630 |
| 5 Bedrooms | $4,211 |
| 6 Bedrooms | $4,716 |
| 7 Bedrooms | $5,093 |
| 8 Bedrooms | $5,348 |
U.S. Census Bureau data (2024)
ZIP 33408, located in North Palm Beach, FL, within the West Palm Beach-Boca Raton, FL HUD Metro FMR Area, serves best as a cash-flow anchor in a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the market rent, which stands at $2190 versus $3,151 respectively for fiscal year 2024. The median home value in this area is $609,176, indicating a robust real estate market that supports higher rents.
The cash-flow anchor role is crucial for maintaining steady income within a diverse investment portfolio. With a FMR of $2190, landlords can secure tenants through the Section 8 program without sacrificing too much potential rental income. The difference between the FMR and the market rent ($961 per month) provides a buffer, ensuring that even if a property is rented through the voucher program, it remains financially viable due to the overall high median home values in the area.
Additionally, the 26.0% renter share and median income of $92,216 suggest a stable tenant base with sufficient financial means to cover their portion of the rent. The low 0.3% price-cut share and extended 89-day Days on Market (DOM) indicate that while there might be some negotiation on pricing, once listed, properties tend to sell after a reasonable period, reflecting a balanced market where demand meets supply.
In conclusion, ZIP 33408 offers a solid foundation for cash flow within a Section 8 portfolio. Its financial metrics support the ability to attract and retain tenants while providing a reliable source of income for landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). 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.