Section 8 Fair Market Rent (FMR) for ZIP 33418 - 2027

Investment Score for ZIP 33418

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,450
1 Bedroom	$2,580
2 Bedrooms	$3,020
3 Bedrooms	$3,920
4 Bedrooms	$4,530
5 Bedrooms	$5,255
6 Bedrooms	$5,886
7 Bedrooms	$6,357
8 Bedrooms	$6,675

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,580	$175,648	1.47%	A
2BR	$3,020	$364,389	0.83%	C
3BR	$3,920	$678,405	0.58%	F
4BR	$4,530	$1,227,375	0.37%	F
5BR	$5,255	$1,941,303	0.27%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33418 (Palm Beach Gardens, FL) #### Section 8 Voucher Dynamics In ZIP code 33418, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2870 per month for 2026. This figure represents 27.4% of the median household income in the area, which stands at $125,497. However, the actual rental market is significantly higher, with Zillow reporting a median price for a two-bedroom home at $365,416. The price-to-FMR ratio of 10.6x indicates that the actual cost of renting far exceeds the FMR. This discrepancy creates significant constraints for Section 8 voucher holders. While the voucher can cover up to $2870, landlords may be reluctant to accept vouchers due to the high disparity between FMR and market rent. Additionally, voucher holders may struggle to find units that are both affordable and willing to accept their vouchers, given the limited supply of properties available at or below the FMR. #### Affordability & Renter Profile The occupancy rate in ZIP 33418 is 88.4%, suggesting a relatively tight rental market. With 23.3% of the population being renters, there is a notable segment of the community that relies on rental housing. Given the median household income of $125,497, most residents are likely to afford higher rents, but the FMR constraints mean that only a small portion of the rental market is accessible to Section 8 voucher holders. The high median household income and the tight rental market indicate that the area is predominantly occupied by higher-income individuals who can afford the premium rents. For those relying on Section 8 vouchers, finding suitable housing is challenging due to the limited number of units available at or below the FMR. The market dynamics suggest that there is a strong demand for rental units, but the supply of affordable units is insufficient to meet the needs of lower-income renters. #### Investor Angle From an investor perspective, the ZIP code 33418 presents a mixed picture. The FMR for a two-bedroom unit is $2870, but the actual median rental price is much higher, at $365,416. This means that if an investor were to purchase a property at the median price and attempt to rent it out at the FMR, they would likely face significant financial challenges. The price-to-FMR ratio of 10.6x implies that the investment would not be cash-flow positive unless the investor could secure a rent above the FMR, which is unlikely given the voucher constraints. The investment grade for this ZIP code would be considered low for Section 8-focused investors. The high median rental prices and the limited availability of units at or below the FMR make it difficult for investors to find profitable opportunities. Moreover, the tight rental market suggests that there may be competition from other investors looking to capitalize on the high demand for rental properties, further complicating the investment landscape. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are priced closer to the FMR rather than at the median rental price. For example, a two-bedroom unit priced around $2870 would be more attractive to Section 8 voucher holders and could provide a better chance of securing tenants. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units such as one-bedroom apartments may offer better investment opportunities. The FMR for a one-bedroom unit is $2420, which is still significantly lower than the median rental price. Investing in smaller units could help mitigate the risk of vacancy and improve cash flow. 3. **Explore Subsidies and Programs**: Investors might consider exploring additional subsidies and programs that could help bridge the gap between FMR and market rent. For instance, some local governments offer incentives for landlords who accept Section 8 vouchers, which could improve the profitability of these investments. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 33418 is to **Skip**. The high median rental prices and the limited availability of units at or below the FMR make it challenging to achieve positive cash flow. Additionally, the tight rental market and the high price-to-FMR ratio suggest that there are few opportunities for investors to profitably acquire and manage properties that are accessible to Section 8 voucher holders.

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.