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 | $1,910 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,520 |
| 5 Bedrooms | $4,083 |
| 6 Bedrooms | $4,573 |
| 7 Bedrooms | $4,939 |
| 8 Bedrooms | $5,186 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,010 | $86,891 | 2.31% | A+ |
| 2BR | $2,350 | $177,089 | 1.33% | A |
| 3BR | $3,050 | $456,990 | 0.67% | D |
| 4BR | $3,520 | $808,866 | 0.44% | F |
| 5BR | $4,083 | $2,472,382 | 0.17% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Delray Beach, FL (ZIP 33484) might raise several concerns regarding the feasibility of investing in properties eligible for Section 8 housing programs. Here are three common objections and the data to address them:
Objection 1: Will FMR $2110 (zip FY 2024) cover the mortgage on a $204,073 home?
The Fair Market Rent (FMR) for ZIP 33484 in fiscal year 2024 is set at $2110. To determine if this will cover the mortgage, we must consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $204,073 home would be approximately $1085. This leaves a significant buffer between the FMR and the mortgage payment, suggesting that the rent would indeed cover the mortgage and allow for additional expenses such as maintenance and property taxes.
Objection 2: Is there enough renter demand at 19.0%?
The rental vacancy rate in ZIP 33484 stands at 19.0%. While this figure is higher than some desirable markets, it still indicates that there is demand for rental units. A 19.0% vacancy rate means that 81.0% of available units are occupied. This suggests that even though competition for tenants might be stiff, there are still opportunities to secure long-term rentals. However, the data does not provide insights into the specific demand for Section 8 rental units, which could be lower due to the additional administrative requirements.
Objection 3: Will vouchers keep pace with $2,499 market rents?
The market rent for a two-bedroom apartment in ZIP 33484 is currently $2,499. The Section 8 voucher program aims to cover a substantial portion of the market rent but is subject to annual adjustments based on federal guidelines and local housing authority policies. In ZIP 33484, the FMR is lower than the market rent, indicating that vouchers may not fully cover the cost. Landlords should prepare for potential gaps between the voucher amount and the actual rent charged. It's also important to note that the program has faced funding challenges in the past, which could impact its ability to keep pace with rising market rents.
In conclusion, while the data shows that FMR can comfortably cover the mortgage payments on a home valued at $204,073, there are uncertainties regarding the specific demand for Section 8 units and the long-term sustainability of voucher amounts relative to market rents. These factors should be carefully considered before making an investment decision.
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.