Location: Cape Coral-Fort Myers, FL | Metro: Cape Coral-Fort Myers, FL MSA
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 | $1,470 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,480 | $105,306 | 1.41% | A |
| 2BR | $1,770 | $175,628 | 1.01% | B |
| 3BR | $2,310 | $303,824 | 0.76% | D |
| 4BR | $2,560 | $495,181 | 0.52% | F |
| 5BR | $2,970 | $864,344 | 0.34% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 33901, located in Fort Myers, Florida, within Lee County and the Cape Coral-Fort Myers MSA, reveals several key points. The HUD Fair Market Rent (FMR) for FY 2024 stands at $1480, while the market rent, measured by Zillow's ZORI, is $1604. This indicates that voucher tenants would cashflow marginally at the FMR rate, requiring landlords to maintain competitive pricing to attract these tenants.
To further analyze the investment potential, consider the median home value of $258,582. The rent-to-price ratio can be calculated by dividing the average monthly rent by the median home value and multiplying by 12. Here, the ratio is approximately 7.0%. This suggests that rental income is relatively low compared to the value of homes, indicating that cashflow might not be the strongest aspect of investment in this area.
The median Days on Market (DOM) for rentals is 72 days, which is relatively short, showing that properties are typically rented out quickly once they are listed. Additionally, the 0.3% price-cut share indicates that there is minimal need for price reductions to secure tenants, implying a stable rental market where landlords can generally expect consistent occupancy without significant concessions.
In summary, while cashflow may be marginal due to the close alignment between HUD FMR and market rents, the strong tenant demand and stable rental conditions make stability the most compelling angle for Section 8 investors in ZIP 33901.
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.