Location: Punta Gorda, FL | Metro: Punta Gorda, 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 | $1,070 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $119,729 | 0.99% | C |
| 2BR | $1,540 | $223,089 | 0.69% | D |
| 3BR | $2,090 | $498,476 | 0.42% | F |
| 4BR | $2,500 | $606,009 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 33950 in Punta Gorda, FL, reveals a clear disparity between the federally mandated Fair Market Rent (FMR) and the market rent. For a two-bedroom unit, the annualized FMR is $1470 per month, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1922 per month.
To derive the implied gross yield, we first calculate the annual rents. The annual FMR rent for a two-bedroom unit is $17,640 ($1470 x 12 months), whereas the annual market rent is $23,064 ($1922 x 12 months).
Given the median home value of $367,269, the implied gross yield based on the FMR is approximately 4.8% ($17,640 / $367,269). In contrast, the implied gross yield based on the market rent is around 6.3% ($23,064 / $367,269).
The gross yield comparison shows that the market rent scenario is significantly more favorable. However, considering the local rental market dynamics, it's important to note that only 17.6% of residents are renters, indicating a relatively low demand for rental properties. Additionally, the days on market (DOM) figure of 80 days suggests that rental units may take longer to fill compared to other areas.
While the higher gross yield of 6.3% derived from market rent is appealing, the actual performance for landlords participating in the Section 8 program is likely to be closer to the 4.8% yield based on FMR. This is due to the limited pool of potential tenants who qualify for Section 8 vouchers and the specific requirements of the program that can affect occupancy rates and maintenance costs.
Landlords and small-portfolio investors should prepare for a lower gross yield when considering Section 8 properties in ZIP 33950. Although the market rent scenario offers a better return, the realities of the local rental market suggest that the FMR-based yield is more reflective of the long-term financial outcome.
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.