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 | $1,590 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $114,130 | 1.4% | A |
| 2BR | $1,880 | $208,209 | 0.9% | C |
| 3BR | $2,430 | $386,648 | 0.63% | D |
| 4BR | $2,680 | $567,519 | 0.47% | F |
| 5BR | $3,109 | $1,026,382 | 0.3% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 33904 in Cape Coral, Florida, on the axes of yield and stability reveals a market that offers moderate potential for both cash flow and investment security. The Fair Market Rent (FMR) for 2024 is projected at $1,690, while the market rent stands slightly higher at $1,738. Given the median home value of $339,761, these figures suggest a decent rental yield, but not exceptionally high.
In terms of stability, the ZIP code has a relatively low percentage of renters at 23.0%, indicating that a significant portion of the population owns their homes. This could imply less demand for rentals and thus lower stability. Additionally, the days on market (DOM) average at 59 days, which is longer than desirable for quick property turnovers, further pointing towards a less stable rental environment. However, the median household income of $71,190 provides a solid financial foundation for tenants, potentially leading to fewer defaults and more consistent rental payments.
Based on these figures, ZIP 33904 does not fit the profile of a high-yield/low-stability flip-style market. Instead, it leans more toward a steady-cashflow zone, albeit with some caveats. The rental yield is reasonable given the home values, and the income levels support stable tenant behavior. Yet, the lower renter percentage and longer DOM indicate a market where rapid property flips might face challenges due to slower rental demand.
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.