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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,480 | $100,649 | 1.47% | A |
| 2BR | $1,770 | $151,114 | 1.17% | B |
| 3BR | $2,310 | $291,926 | 0.79% | D |
| 4BR | $2,560 | $367,424 | 0.7% | D |
| 5BR | $2,970 | $520,330 | 0.57% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 33903, North Fort Myers, Florida, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom unit, which is set at $1310 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental conditions unique to this area.
Comparatively, the local market rent for a similar two-bedroom unit stands at $1,825, as indicated by the ZORI (Zillow Observed Rental Index). This represents the average rent that tenants might be expected to pay without a voucher, highlighting the difference between subsidized and market rates.
A landlord participating in the Section 8 program receives payment from the voucher directly. The reimbursement is calculated based on the SAFMR, the tenant's portion of the rent, and utility allowances. The tenant's share is generally 30% of their adjusted income, which must fall below the income limits set by HUD (Housing and Urban Development).
To illustrate, if a tenant's adjusted monthly income is $1,000, they would contribute $300 towards the rent. The remaining amount up to the SAFMR of $1310 is covered by the government, which in this case would be $1010. Utility allowances are additional funds provided to cover utilities such as electricity, water, and gas. These allowances vary but are typically around $200-$300 per month for a two-bedroom unit.
Therefore, the total reimbursement a landlord can expect from a Section 8 voucher for a two-bedroom unit in ZIP 33903 would be approximately $1310 (SAFMR) + $200-$300 (utility allowance), totaling $1510-$1610. This amount is fixed and does not fluctuate with market conditions, unlike the local market rent of $1,825.
This leaves a gap between the market rent and the Section 8 reimbursement. For a landlord renting out a two-bedroom unit at the market rate of $1,825, the shortfall would be $215-$315 per month. Conversely, if the landlord sets the rent at the SAFMR level of $1310, there is no gap, and the landlord receives the full SAFMR amount plus any applicable utility allowances.
In conclusion, the typical reimbursement gap for a two-bedroom unit in ZIP 33903 under the Section 8 program is a deficit of $215-$315 per month when compared to the local market rent. Landlords must carefully consider this gap when deciding whether to participate in the program and setting their rental rates.
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.