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 | $1,590 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $200,032 | 0.94% | C |
| 3BR | $2,430 | $324,474 | 0.75% | D |
| 4BR | $2,680 | $417,608 | 0.64% | D |
| 5BR | $3,109 | $462,385 | 0.67% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 33990 in Cape Coral, Florida, for fiscal year 2024 is set at $1770. This figure represents the payment standard for Section 8 rentals, which is the amount the government will pay on behalf of eligible tenants. It's important to note that this is not the rent you can charge your tenant; it's the maximum subsidy payment you'll receive.
To put this into context, the local Zillow Rent Index (ZORI) for Cape Coral is currently $1,712. This means that the FMR is slightly higher than the average market rent, which is beneficial for landlords participating in the Section 8 program. The difference between the FMR and the ZORI suggests that landlords can potentially charge a little above the ZORI rate, but not significantly higher than the FMR, to cover their costs and profit margin.
The 27.4% renter share indicates that nearly 27.4% of the households in Cape Coral are renters. This percentage reflects a steady demand for rental properties, making it a viable market for new Section 8 landlords. If you're looking to enter the Section 8 rental market, you can expect a reasonable number of interested tenants.
When considering acquiring a property in this area for a Section 8 rental, the median home value is around $323,618. This is the typical price you might expect to pay for a property in Cape Coral, and it should be factored into your investment strategy. To ensure profitability, calculate your potential monthly income against this acquisition cost and other expenses such as maintenance, insurance, and property taxes.
Before you decide to take the plunge into the Section 8 rental market, verify that the property meets all local housing quality standards (HQS). These standards are set by the U.S. Department of Housing and Urban Development (HUD) and must be met to qualify for the program. Failure to comply with these standards can result in penalties or removal from the program, so it's crucial to confirm that your property is up to code.
In summary, the FMR of $1770 provides a clear benchmark for the subsidy you'll receive, while the ZORI of $1,712 gives insight into the local market. With a 27.4% renter share, there's a solid demand for rentals. A median home value of $323,618 helps you understand the acquisition cost. Ensure your property meets HQS to avoid future complications.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.