Location: Hendry County, 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 | $113,783 | 1.3% | A |
| 2BR | $1,770 | $182,525 | 0.97% | C |
| 3BR | $2,310 | $258,960 | 0.89% | C |
| 4BR | $2,560 | $307,816 | 0.83% | C |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 33936 (Lehigh Acres, FL) for Section 8 investments, follow this decision tree:
1) Does the Fair Market Rent ($1400) for the fiscal year 2024 cover the debt service on a $242,988 property?
No: The FMR of $1400 is unlikely to clear the debt service on a property valued at $242,988. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the property value, these expenses would likely exceed $1400 per month, making it financially unviable to rely solely on Section 8 rents.
Yes: This scenario is improbable given the property value and the FMR. However, if you find a property where $1400 can indeed cover all debt-related expenses, then proceed to the next question.
2) How does the Zillow Observed Rental Index (ZORI) of $1,666 compare to the FMR?
ZORI is above FMR: At $1,666, the market rent exceeds the FMR of $1400. This indicates that landlords could potentially earn higher rents from non-Section 8 tenants. Therefore, it might be more profitable to target the broader rental market rather than Section 8 alone.
ZORI is equal to or below FMR: In this case, the market rent is either at par or below the FMR, which makes Section 8 more competitive. Proceed to the third question to assess demand.
3) Is the demand sufficient given 27.8% of residents are renters and the days on market (DOM) is 72 days?
It depends: With 27.8% of residents being renters, there is a moderate level of demand. A DOM of 72 days suggests that properties take about two and a half months to rent out, which is longer than ideal but not necessarily prohibitive. If you are willing to accept a slightly slower turnover rate and the competition from non-Section 8 rentals is minimal, then the demand could still be considered adequate. Otherwise, the relatively high DOM may indicate a saturated market or difficulty in finding tenants.
In conclusion, the decision to invest in ZIP 33936 for Section 8 properties hinges on the ability to manage a property within the FMR, the competitiveness of the FMR against market rents, and the sufficiency of tenant demand. Given the data, it is challenging to recommend buying a $242,988 property for Section 8 purposes due to the low FMR relative to the property's cost and the potential for higher market rents.
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.