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 | $1,730 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,040 | $186,168 | 1.1% | B |
| 3BR | $2,640 | $287,026 | 0.92% | C |
| 4BR | $2,910 | $334,900 | 0.87% | C |
| 5BR | $3,376 | $396,702 | 0.85% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 33909 in Cape Coral, Florida reveals that the HUD Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,830. This figure closely aligns with the market rent of $1,854, as indicated by ZORI (Zillow Observed Rent Index). Given this alignment, voucher tenants will generally cashflow at the FMR level, meaning landlords can expect a slight positive cashflow without significant risk.
To further understand the investment landscape, the median home value in ZIP 33909 stands at $296,411. Using this, we can derive the rent-to-price ratio, which is approximately 0.62%. This suggests that rental income represents a modest portion of the property's total value, indicating a balance between rental yield and potential capital appreciation.
The dynamics of the local real estate market also play a role in investment decisions. The median Days on Market (DOM) is 54 days, and the price-cut share is 0.3%, both of which point towards a relatively stable housing market where homes sell quickly and at or near asking price. These factors contribute to a favorable environment for investors who prioritize stability and quick turnover.
In conclusion, the strongest investor angle in ZIP 33909 is stability. The close alignment of HUD FMR and market rents ensures consistent cashflow, while the robust real estate market metrics suggest minimal risk and rapid property sales if needed.
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.