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 | $2,140 |
| 1 Bedroom | $2,260 |
| 2 Bedrooms | $2,640 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $3,960 |
| 5 Bedrooms | $4,594 |
| 6 Bedrooms | $5,145 |
| 7 Bedrooms | $5,557 |
| 8 Bedrooms | $5,835 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,640 | $575,037 | 0.46% | F |
| 3BR | $3,430 | $716,740 | 0.48% | F |
| 4BR | $3,960 | $942,959 | 0.42% | F |
| 5BR | $4,594 | $1,450,075 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 33412, which encompasses Palm Beach Gardens, FL, offers a unique investment opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $2830 for the fiscal year 2024. In contrast, the Zillow Observed Rent Index (ZORI), reflecting the actual market rent, stands at $4,068. This indicates that voucher tenants would only cashflow in premium units, given the significant gap between the HUD FMR and the market rent.
To further analyze the investment potential, consider the median home value in the area, which is $801,059. By comparing this figure to the average rent, we can derive the rent-to-price ratio. A median home value of $801,059 and an average rent of $4,068 result in a rent-to-price ratio of approximately 0.51%. This ratio suggests that rental income alone would not be sufficient to cover mortgage payments, property taxes, and maintenance costs without relying on premium units or other sources of income.
The market conditions also provide insight into the rent-versus-buy dynamics. With a median days on market (DOM) of 73 days and a price-cut share of 0.3%, it's evident that the housing market is quite active and competitive. However, these metrics do not directly impact the decision-making process for rental investments but highlight the overall robustness of the local real estate market.
In conclusion, the strongest investor angle in ZIP 33412 is likely to be stability. Given the high median home values and the competitive nature of the real estate market, maintaining a steady stream of rental income through premium units is a reliable strategy for long-term financial 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.