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 | $2,200 |
| 1 Bedroom | $2,320 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,520 |
| 4 Bedrooms | $4,060 |
| 5 Bedrooms | $4,710 |
| 6 Bedrooms | $5,275 |
| 7 Bedrooms | $5,697 |
| 8 Bedrooms | $5,982 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,320 | $222,833 | 1.04% | B |
| 2BR | $2,710 | $350,322 | 0.77% | D |
| 3BR | $3,520 | $653,676 | 0.54% | F |
| 4BR | $4,060 | $859,060 | 0.47% | F |
| 5BR | $4,710 | $3,115,411 | 0.15% | F |
U.S. Census Bureau data (2024)
Palm Beach Gardens, FL, is a suburban area with a total population of 36,759, where 27.7% of residents are renters. The median household income in this zip code is $94,530, indicating a relatively affluent community. The median home value stands at $579,669, reflecting the high cost of homeownership in the region. This neighborhood is characterized by its mix of residential areas, with a significant portion of residents choosing to rent rather than buy.
When it comes to rental economics, the Fair Market Rent (FMR) for ZIP 33410 in fiscal year 2024 is set at $2,610. In comparison, the market rent, as measured by Zillow's ZORI, is slightly lower at $2,555. These figures suggest that landlords in Palm Beach Gardens can expect a reasonable return on investment, particularly if they align their rents with the FMR guidelines to attract Section 8 tenants.
The practical question for investors is whether this area suits a hands-off voucher operator or requires a hands-on approach to add value. Given the high median income and median home values, there is potential for both strategies. A hands-off operator can benefit from the stable demand for affordable housing and the established Section 8 program, which guarantees a steady stream of rental income. On the other hand, a value-add buyer might find opportunities to improve properties and command higher rents, especially considering the slight gap between FMR and market rent.
Investors should also consider the demographic makeup and the local economy when deciding on their strategy. The presence of a substantial number of renters suggests a diverse population, including families, young professionals, and retirees, all of whom could be interested in Section 8 housing. This diversity provides a broad base of potential tenants, reducing the risk associated with relying solely on voucher holders.
In conclusion, ZIP 33410 offers a balanced environment for Section 8 investments. Whether an investor chooses a hands-off or hands-on approach will depend on their risk tolerance and long-term goals. However, the economic indicators point to a favorable climate for rental properties, with strong potential for both stability and growth.
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.