Section 8 Fair Market Rent (FMR) for ZIP 33461 - 2027

Investment Score for ZIP 33461

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	$1,800
1 Bedroom	$1,900
2 Bedrooms	$2,220
3 Bedrooms	$2,880
4 Bedrooms	$3,330
5 Bedrooms	$3,863
6 Bedrooms	$4,327
7 Bedrooms	$4,673
8 Bedrooms	$4,907

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	$1,900	$84,399	2.25%	A+
2BR	$2,220	$207,767	1.07%	B
3BR	$2,880	$422,093	0.68%	D
4BR	$3,330	$511,909	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33461 (Palm Springs, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 33461 in Palm Beach County, Florida, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,160, which represents 41.8% of the median household income of $61,963. However, the actual rent for a two-bedroom unit is significantly lower, with Zillow reporting a median price of $204,713. This translates into a price-to-FMR ratio of 7.9x, indicating that the actual rental prices are much lower than the FMR. For voucher holders, this means they can potentially find housing below the FMR, but there are constraints. The voucher program will only cover up to the FMR, so tenants must ensure their total rent does not exceed this amount. In ZIP 33461, where the actual rents are lower, this should generally be manageable. However, if landlords charge closer to the FMR, tenants could face difficulties in finding affordable housing. #### Affordability & Renter Profile ZIP code 33461 has a population of 49,443, with 48.2% of residents being renters. This indicates a significant demand for rental properties. The occupancy rate is 87.2%, suggesting that the market is relatively tight, with most available units being occupied. Given the median household income of $61,963, many residents would struggle to afford homes priced at the FMR levels. The majority of renters are likely to be low-income families who rely on government assistance like Section 8 vouchers to secure housing. The affordability gap is stark when considering that the FMR for a three-bedroom unit is $2,800, while the median income suggests that such a high rent would be challenging for many households. Therefore, the market is likely to favor those with access to subsidies or other financial support. #### Investor Angle From an investor perspective, the ZIP code 33461 offers potential opportunities, especially for those focusing on Section 8 properties. The FMRs provide a benchmark for rental pricing, and given that the actual rents are lower, it is possible to achieve cash flow positive investments. For instance, a two-bedroom unit with an FMR of $2,160 is well above the Zillow median price of $204,713, which implies that rental income can comfortably cover mortgage payments and other expenses. However, investors need to consider that the demand for Section 8 units is high, and competition among landlords for these vouchers can drive rents closer to the FMR. The investment grade for this ZIP code is moderate. While the market is tight, the high percentage of renters and the availability of Section 8 vouchers make it attractive for investors. However, the need to comply with HUD regulations and the potential for slower turnover rates due to the subsidized nature of the housing can affect the overall profitability. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the FMR for a two-bedroom unit is $2,160, which is 41.8% of the median income, these units are likely to be in high demand. Investors should consider acquiring or developing two-bedroom units to maximize the chances of securing Section 8 tenants. The Zillow median price of $204,713 for a two-bedroom home suggests that these properties are affordable and can generate positive cash flow. 2. **Negotiate Lower Rents**: Since the actual rents are significantly lower than the FMR, landlords should negotiate with tenants to keep rents just under the FMR. This ensures that the tenant can use their voucher effectively without the landlord having to absorb the difference between the actual rent and the FMR. For example, setting the rent at $2,000 for a two-bedroom unit would still attract Section 8 tenants while leaving room for profit. 3. **Comply with HUD Regulations**: To successfully operate in the Section 8 market, landlords must adhere to HUD’s requirements, including maintaining property standards and undergoing regular inspections. This compliance can help avoid penalties and ensure a steady stream of rental income. #### Bottom Line For Section 8-focused investors, ZIP code 33461 presents a mixed picture. The high percentage of renters and the availability of Section 8 vouchers make it a viable market. However, the tight occupancy rate and the need to comply with HUD regulations add layers of complexity. **Recommendation**: **Hold**. Investors already operating in this ZIP code should continue to do so, as the market dynamics are favorable for maintaining a steady cash flow. New investors might want to proceed with caution, ensuring they understand the regulatory environment and the local rental market before making significant investments.

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.