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 | $154,278 | 1.28% | A |
| 2BR | $2,300 | $216,186 | 1.06% | B |
| 3BR | $2,990 | $434,204 | 0.69% | D |
| 4BR | $3,450 | $479,259 | 0.72% | D |
| 5BR | $4,002 | $599,902 | 0.67% | D |
U.S. Census Bureau data (2024)
The dynamics of the ZIP code 33409 in West Palm Beach, FL, reveal a market in flux, with several indicators pointing towards a balance between supply and demand. The Fair Market Rent (FMR) for the area stands at $2090 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) shows a slightly lower market rent of $2,003. This suggests that landlords can expect to charge slightly above the average market rent to meet the FMR standards, which could indicate a slight upward pressure on rental prices.
The low price-cut share of 0.2% implies that most homes are selling at or near their asking price, suggesting a strong seller's market. However, the days on market (DOM) of 56 days is relatively moderate, indicating that while homes are selling without significant price reductions, they are not moving off the market instantly. This could be due to a competitive housing landscape where buyers have some leverage to negotiate terms but not necessarily price.
The median home value in the area is $305,714, which is a key figure for potential investors looking to purchase properties in this ZIP code. It provides a benchmark for property values and can influence decisions on whether to buy, hold, or sell assets.
A noteworthy statistic is the 55.3% renter share, which is significantly high. This high proportion of renters suggests ongoing long-term housing pressure in the area. Landlords and small-portfolio investors should anticipate continued demand for rental properties, as a large segment of the population prefers or needs to rent rather than own. This trend supports the idea that rental properties in ZIP 33409 will remain in high demand, potentially offering stable returns for investors.
Investors should also consider the implications of the FMR being higher than the ZORI. This discrepancy means that there is a regulatory floor set for rents, ensuring that rental income can be maintained at a certain level. For those with properties already meeting these standards, it represents an opportunity to command higher rents, though they must still be mindful of the local market conditions.
In summary, ZIP 33409 presents a market where demand is robust, particularly for rentals, and where property values are steady. The balance between supply and demand, coupled with the high renter share, indicates a stable environment for investment in rental properties. Landlords should focus on maintaining or improving rental rates to align with FMR guidelines, while small-portfolio investors can find opportunities in both purchasing and renting out properties.
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.