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 | $1,650 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $231,262 | 0.84% | C |
| 3BR | $2,520 | $277,523 | 0.91% | C |
| 4BR | $2,780 | $313,471 | 0.89% | C |
U.S. Census Bureau data (2024)
The ZIP code 33974, located in Lehigh Acres, FL, presents an interesting case for real estate investment, particularly for those interested in Section 8 properties. To classify this area, we must consider both the yield and stability of the market.
Yield: The Fair Market Rent (FMR) for ZIP 33974 in fiscal year 2024 is set at $1,540, which is notably lower than the market rent of $1,946. This discrepancy suggests that there is potential for higher yields when focusing on Section 8 properties, as the government rental assistance payments will be a smaller portion of the overall market rent. Additionally, the median home value of $289,846 indicates that the area is not excessively expensive, making it feasible for investors to acquire properties without overextending their budgets.
Stability: Stability in this context can be assessed through the percentage of renters, days on market (DOM), and average income levels. With 27.3% of residents being renters, the demand for rental housing is present but not overwhelming. A DOM of 86 days suggests a moderate level of stability; it's neither too short, indicating a highly competitive market, nor too long, suggesting difficulty in renting out properties. The average income of $72,192 provides insight into the financial health of the area's residents, though this figure alone does not fully determine stability. It implies that while there is a significant portion of the population eligible for Section 8 assistance, there is also a segment capable of paying market rates.
Based on these figures, ZIP 33974 leans towards being a steady-cashflow zone. The relatively low FMR compared to market rents means that Section 8 properties can still generate decent cash flow, even if they are not as profitable as purely market-rate rentals. The moderate DOM and reasonable renter percentage indicate that while the market isn't extremely stable, it offers predictable occupancy rates and rental income. The combination of these factors suggests that investors should expect a reliable, albeit not exceptionally high, return on investment.
However, the lower FMR and the presence of a significant number of residents who qualify for Section 8 assistance point to a market where the investor must balance the benefits of higher yields against the challenges of lower stability. Investors should prepare for a mix of Section 8 tenants and market-rate renters, which can provide a buffer against the volatility often associated with government-subsidized housing.
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.