Location: Cape Coral-Fort Myers, FL | Metro: Cape Coral-Fort Myers, FL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,560 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
The economics of Section 8 housing in ZIP code 33906, located in Cape Coral-Fort Myers County, Florida, can be explained clearly by understanding the SAFMR (Small Area Fair Market Rent) and the reimbursement structure to landlords. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1680. This figure represents the maximum amount that HUD (Housing and Urban Development) will reimburse a landlord for rent.
A voucher holder's contribution towards rent is calculated based on their income, with the expectation that they pay 30% of their adjusted monthly income towards housing. In addition to the base rent, there are utility allowances which vary but are generally around $200-$300 per month. These allowances are paid directly to the landlord along with the voucher reimbursement.
To illustrate, let's assume a voucher holder has an adjusted monthly income of $1500. Their contribution towards rent would be $450 (30% of $1500). If the utility allowance is $250, then the total reimbursement to the landlord would be $450 (tenant contribution) + $250 (utility allowance) = $700. The remaining amount up to the SAFMR of $1680 would be covered by HUD, making the total reimbursement $1680.
In other words, if the landlord charges $1680 for a two-bedroom unit, HUD would cover the difference between the tenant's contribution and the SAFMR. Landlords receive the full SAFMR amount as long as it does not exceed the actual rent charged. Therefore, the landlord's net income from a Section 8 tenant for a two-bedroom unit at the SAFMR rate is $1680.
Given that the local market rent data is currently unavailable, it's important to compare the SAFMR to general market rates in similar areas to understand the potential surplus or gap. However, based solely on the SAFMR of $1680, landlords can expect a consistent and reliable income from Section 8 tenants, assuming the rent charged does not exceed the SAFMR.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 33906 would depend on the actual rent charged by the landlord. If the landlord sets the rent below $1680, there would be no gap, and the landlord would receive the full rent plus utility allowance. If the landlord charges above $1680, there would be a gap that must be accepted by the landlord, as they cannot charge more than the SAFMR to a Section 8 tenant.
In conclusion, landlords in ZIP 33906 can expect a stable income of $1680 for a two-bedroom unit when participating in the Section 8 program. This ensures predictability in rental income but also caps potential earnings to the SAFMR rate.
Data Sources: FMR data from HUD (2027).
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.