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 | $2,080 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,670 |
| 3 Bedrooms | $3,480 |
| 4 Bedrooms | $4,150 |
| 5 Bedrooms | $4,814 |
| 6 Bedrooms | $5,392 |
| 7 Bedrooms | $5,823 |
| 8 Bedrooms | $6,114 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,670 | $366,712 | 0.73% | D |
| 3BR | $3,480 | $667,761 | 0.52% | F |
| 4BR | $4,150 | $880,604 | 0.47% | F |
| 5BR | $4,814 | $1,168,113 | 0.41% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 33498, located in Boca Raton, Florida, within the West Palm Beach-Boca Raton HUD Metro FMR Area, does not work favorably for landlords. The Fair Market Rent (FMR) for the area is set at $3340 for FY 2024, significantly below the market rent of $4,861 (ZORI). This disparity indicates that landlords may struggle to cover costs and maintain profitability if they align their rental prices with the FMR guidelines.
Acquisition in this ZIP code is relatively affordable considering the median home value stands at $781,736. However, the 38-day Days on Market (DOM) and the low 0.2% price-cut share suggest that homes are selling quickly without significant discounts. This implies that while the median home value is high, the market remains competitive and efficient, making it challenging for investors to find undervalued properties.
Tenant demand in ZIP 33498 is limited. With a total population of 16,853 and only 5.3% being renters, the pool of potential tenants is small. This low renter share could make it difficult for landlords to consistently fill vacancies, especially at higher rental rates.
In conclusion, the financial viability of investing in ZIP 33498 as a landlord is questionable due to the unfavorable rent math and limited tenant demand. While acquisitions are not prohibitively expensive, the high median home value and quick sales indicate a tight market where finding deals may be challenging. These factors collectively suggest that the area may not be an optimal choice for landlords and small-portfolio investors seeking stable returns and consistent occupancy.
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.