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 | $2,650 |
| 1 Bedroom | $2,790 |
| 2 Bedrooms | $3,260 |
| 3 Bedrooms | $4,240 |
| 4 Bedrooms | $4,890 |
| 5 Bedrooms | $5,672 |
| 6 Bedrooms | $6,353 |
| 7 Bedrooms | $6,861 |
| 8 Bedrooms | $7,204 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,260 | $294,843 | 1.11% | B |
| 3BR | $4,240 | $694,729 | 0.61% | D |
| 4BR | $4,890 | $1,881,648 | 0.26% | F |
| 5BR | $5,672 | $3,085,895 | 0.18% | F |
U.S. Census Bureau data (2024)
Boca Raton, FL's ZIP code 33496 is a high-end residential area with a total population of 26,579. The neighborhood has a relatively low percentage of renters at 16.5%, indicating a predominantly owner-occupied community. This aligns with the median home value of $980,316, which is significantly higher than the national average, reflecting the affluent nature of the area. Residents here enjoy a median income of $114,885, further underscoring the economic prosperity of the community.
The rental economics in ZIP 33496 are favorable for investors. The Fair Market Rent (FMR) for the area, set at $3030 for fiscal year 2024, is slightly above the market rent of $2,965 as indicated by Zillow's Observed Rent Index (ZORI). This suggests that properties under Section 8 contracts can command rents that are competitive with the local market, providing a stable income stream for landlords.
Given the characteristics of ZIP 33496, it is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the neighborhood and the proximity of FMR to market rents ensure consistent cash flow with minimal management effort. On the other hand, value-add buyers can leverage the area's high median home value and income levels to enhance property values through renovations and improvements, potentially increasing the rental rates beyond the FMR when the unit becomes available on the open market again.
In summary, ZIP 33496 in Boca Raton, FL, offers a robust environment for Section 8 investment, with a strong economic foundation and a slight edge in FMR over market rents. Both passive and active investors can find opportunities that match their investment strategies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.