Section 8 Fair Market Rent (FMR) for ZIP 34120 - 2027

Investment Score for ZIP 34120

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,730
1 Bedroom	$2,290
2 Bedrooms	$2,490
3 Bedrooms	$3,160
4 Bedrooms	$3,440
5 Bedrooms	$3,990
6 Bedrooms	$4,469
7 Bedrooms	$4,827
8 Bedrooms	$5,068

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,490	$409,457	0.61%	D
3BR	$3,160	$514,124	0.61%	D
4BR	$3,440	$633,244	0.54%	F
5BR	$3,990	$734,601	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 34120 (Naples, FL) #### Section 8 Voucher Dynamics In ZIP code 34120, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,460 for the year 2026. This figure represents 31.5% of the median household income in the area, which stands at $93,861. However, it is important to note that the actual rent for a two-bedroom unit in Naples, according to Zillow, is $417,970 per year, which translates to approximately $34,831 per month. This is significantly higher than the FMR, indicating that voucher holders face substantial constraints in finding affordable housing. The price-to-FMR ratio of 14.2x suggests that the actual rental market is far above what is considered fair market rent by HUD standards. Consequently, tenants with Section 8 vouchers may struggle to find properties that accept their vouchers due to the high cost of renting in the area. #### Affordability & Renter Profile The population of ZIP 34120 is 42,345, with only 9.4% of residents being renters. This low percentage of renters indicates that the housing market in Naples is primarily composed of homeowners, suggesting a relatively tight rental market. With an occupancy rate of 83.6%, there is a moderate level of demand for rental units, but the limited supply and high costs make it challenging for renters, especially those relying on Section 8 vouchers, to secure housing. The median household income of $93,861 further underscores the affluence of the area, making it less likely for landlords to accept lower-paying Section 8 vouchers when they can attract higher-paying tenants. #### Investor Angle From an investor's perspective, the ZIP code 34120 presents a challenging scenario for cash flow positivity at FMR levels. Given that the actual median rent for a two-bedroom unit is $34,831 per month, compared to the FMR of $2,460, it is clear that the rental market is highly inflated. For an investor to achieve positive cash flow, they would need to consider the actual rental rates rather than the FMR. At the FMR level, the investment grade would be low, as the rents do not cover the costs associated with owning and maintaining a property in such a high-cost area. To illustrate, let’s break down the numbers: - Actual median rent for a two-bedroom unit: $34,831 per month ($417,970 annually). - FMR for a two-bedroom unit: $2,460 per month ($29,520 annually). Given these figures, an investor would need to charge close to the actual median rent to ensure profitability. Charging the FMR would result in significant financial losses, especially considering the high costs of maintenance, insurance, and property taxes in a wealthy coastal area like Naples. #### Specific Actionable Insights 1. **Focus on Higher-Rent Properties**: Investors should focus on acquiring properties that can command higher rents, closer to the actual median rent of $34,831 per month. This will help ensure positive cash flow and a better return on investment. For instance, targeting three-bedroom or four-bedroom units with FMRs of $3,200 and $3,470 respectively, could provide a more viable option for generating revenue. 2. **Consider Luxury Rentals**: Given the affluence of the area, luxury rentals may be more attractive to landlords and investors. Properties that offer amenities such as swimming pools, golf course views, and proximity to beaches can justify higher rents and may be more likely to appeal to non-voucher tenants. This strategy would also align with the local demographic, where the majority of residents are homeowners with higher incomes. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 34120 is to **skip** this market. The extremely high actual rental rates compared to the FMR indicate that the area is not conducive to positive cash flow when relying solely on Section 8 vouchers. Additionally, the low percentage of renters and high median household income suggest that landlords have ample opportunities to attract higher-paying tenants, reducing the likelihood of accepting Section 8 vouchers. Therefore, investors looking to capitalize on Section 8 vouchers should consider other markets with more favorable conditions for both affordability and acceptance of government assistance programs.

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.