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 | $2,350 |
| 1 Bedroom | $2,480 |
| 2 Bedrooms | $2,900 |
| 3 Bedrooms | $3,770 |
| 4 Bedrooms | $4,350 |
| 5 Bedrooms | $5,046 |
| 6 Bedrooms | $5,652 |
| 7 Bedrooms | $6,104 |
| 8 Bedrooms | $6,409 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,480 | $155,295 | 1.6% | A+ |
| 2BR | $2,900 | $336,383 | 0.86% | C |
| 3BR | $3,770 | $721,714 | 0.52% | F |
| 4BR | $4,350 | $1,139,902 | 0.38% | F |
| 5BR | $5,046 | $1,835,902 | 0.27% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 33486 in Boca Raton, FL, for fiscal year 2024 is set at $2710. This figure represents the average amount that voucher holders can pay for rent in the area. In comparison, the market rent, measured by Zillow's Observed Rent Index (ZORI), stands at $2,578. This indicates that voucher tenants will generally cashflow positively in this region, even without premium units. The difference between the HUD FMR and the market rent suggests a margin of about $132 per month for landlords, which is a clear positive indicator for cashflow.
To understand the broader context of the rental market in ZIP 33486, consider the median home value, which is $740,020. Using this figure, we can calculate the rent-to-price ratio. The ratio comes out to be approximately 0.35%, indicating that the cost of renting is relatively low compared to buying, which could influence the decision-making process of potential tenants. A lower rent-to-price ratio often means that buying might be more attractive, but given the high median home values, many residents may still prefer renting due to financial constraints or lifestyle choices.
The dynamics of the rental market are further supported by the 21-day median Days on Market (DOM) and the 0.2% share of listings that require a price cut. These figures suggest that properties in this area are typically rented quickly and without significant negotiation, indicating a strong demand for rentals and a stable market. This quick turnover and minimal need for price adjustments contribute to the overall stability and attractiveness of the rental market for investors.
The strongest investor angle in ZIP 33486 is cashflow. With the HUD FMR exceeding the market rent, landlords can expect steady, reliable income from Section 8 tenants without needing to rely on premium units or extensive renovations. Additionally, the rapid rental rates and lack of price cuts indicate a robust and stable market, making it an ideal location for those seeking consistent returns on their investment.
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.