Section 8 Fair Market Rent (FMR) for ZIP 33914 - 2027

Investment Score for ZIP 33914

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,700
1 Bedroom	$1,710
2 Bedrooms	$2,000
3 Bedrooms	$2,590
4 Bedrooms	$2,850
5 Bedrooms	$3,306
6 Bedrooms	$3,703
7 Bedrooms	$3,999
8 Bedrooms	$4,199

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,000	$202,134	0.99%	C
3BR	$2,590	$414,806	0.62%	D
4BR	$2,850	$525,106	0.54%	F
5BR	$3,306	$826,470	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 33914 (Cape Coral, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Cape Coral, FL, as of 2026, is set at $2100 for a two-bedroom unit, which represents 30.2% of the median household income of $83,503. This indicates that the FMR is relatively affordable compared to the local income levels. However, it is important to note that the actual rental rates can vary significantly from these figures. The Zillow median price for a two-bedroom home in this ZIP code is $207,143, which suggests that the property values are quite high relative to the rental rates. The price-to-FMR ratio of 8.2x for a two-bedroom unit implies that the cost of purchasing a property is substantially higher than what a Section 8 voucher holder could afford in rent. This means that landlords who rely on Section 8 vouchers might find it challenging to cover their mortgage payments if they purchase properties at current market values. Therefore, there is a significant constraint for voucher holders in terms of finding affordable housing within the ZIP code. #### Affordability & Renter Profile With a renter population of 20.6%, Cape Coral has a moderate demand for rental units. The occupancy rate of 76.3% suggests that the rental market is neither overly tight nor oversupplied; it is balanced but slightly on the lower side of occupancy, indicating some room for additional rental units without creating an oversupply situation. Given the median household income of $83,503, the majority of residents are likely to be middle-class individuals or families who can afford to pay market rates for housing. However, the 20.6% of renters who rely on Section 8 vouchers face significant affordability challenges due to the high price-to-FMR ratio. The FMR for a two-bedroom unit is $2100, which is only a fraction of the median income, making it difficult for voucher holders to find suitable housing options. This suggests that the rental market may be somewhat strained for low-income households, especially those relying on government assistance. #### Investor Angle From an investor perspective, the ZIP code 33914 presents a mixed picture. While the median household income is relatively high, the actual rental rates are much lower than the property values, as indicated by the Zillow median price. The price-to-FMR ratio of 8.2x means that investors would need to ensure that they have a solid understanding of the local rental market dynamics to make informed decisions. To determine whether this ZIP code is cash-flow positive at FMR, we must consider the typical expenses associated with owning a rental property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Given the high property values, it is likely that mortgage payments alone would exceed the FMR for a two-bedroom unit. For example, a mortgage payment on a $207,143 property could easily surpass $2100 per month, depending on interest rates and loan terms. Therefore, the investment grade for this ZIP code would be considered low for Section 8-focused investors. The high cost of acquiring properties combined with the relatively low rental rates supported by Section 8 vouchers makes it challenging to achieve positive cash flow. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should focus on acquiring properties that are priced below the Zillow median. For instance, targeting a two-bedroom unit priced around $150,000-$170,000 could help ensure that the mortgage payments align better with the FMR. This would allow for a more manageable financial burden and potentially positive cash flow. 2. **Consider Multi-Family Units**: Given the higher FMRs for larger units, such as three-bedroom ($2740) and four-bedroom ($3040) units, investors might consider multi-family units where they can charge higher rents. This strategy could help offset the high acquisition costs and provide a better return on investment. 3. **Evaluate Non-Residential Investment Opportunities**: Due to the challenges in achieving positive cash flow through residential rentals, investors might want to explore non-residential investment opportunities within the ZIP code. Commercial real estate or small business investments could offer alternative avenues for generating income. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 33914 is to **skip** this market. The high property values and low rental rates supported by Section 8 vouchers make it difficult to achieve positive cash flow. Additionally, the tight rental market and high price-to-FMR ratio suggest that the returns on investment would be limited, especially when considering the operational costs associated with owning rental properties. Investors looking to enter the Cape Coral market should carefully evaluate their financial models and consider alternative strategies or markets that offer a more favorable balance between property acquisition costs and rental income.

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.