Section 8 Fair Market Rent (FMR) for ZIP 34119 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 34119

• Housing Authority of the City of Fort Myers (Fort Myers, FL) - 2,989 Section 8 vouchers
• Collier County Housing Authority (Immokalee, FL) - 522 Section 8 vouchers
• Lee County Housing Authority (North Fort Myers, FL) - 379 Section 8 vouchers

To determine if you should buy in ZIP code 34119 (Naples, FL) for Section 8 investments, follow this decision tree:

1) Does FMR $2010 (zip FY 2024) clear debt service on a $657,538 property?

• No: The Fair Market Rent (FMR) for a 2-bedroom apartment in Naples, FL for fiscal year 2024 is $2,010. Assuming a conservative debt service coverage ratio (DSCR), this FMR would not be sufficient to cover the debt service on a property valued at $657,538. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs.

2) Is market rent $2,826 (ZORI) above, at, or below FMR?

• Above: The Zillow Observed Rental Index (ZORI) indicates that the average market rent for Naples, FL is $2,826. This is significantly higher than the FMR of $2,010, suggesting strong rental demand beyond just Section 8 tenants.

3) Are 16.4% renters + 48-day DOM enough demand?

• Yes: With 16.4% of the population being renters and an average days on market (DOM) of 48 days, there is a reasonable level of demand for rental properties in Naples, FL. However, the success of a Section 8 investment hinges on the ability to secure tenants willing to pay the FMR and the overall market conditions.

If the FMR does not cover debt service, the next step is to evaluate whether the market rent is high enough to attract other types of tenants who can pay more than the FMR. In this case, the market rent is indeed higher, which could offset the limitations of relying solely on Section 8 funding.

The rental market in Naples, FL, shows moderate strength with a decent percentage of renters and relatively quick turnover times. This suggests that there is a viable market for rental properties, even if a significant portion of your potential tenant pool is not exclusively Section 8 eligible.

In conclusion, while the FMR may not fully support a $657,538 property's debt service, the higher market rents and acceptable rental demand indicate that Naples, FL could still be a worthwhile investment for landlords looking to diversify their tenant base beyond Section 8 alone.

Data Sources: FMR data from HUD (2027). 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.