Location: Port St. Lucie, FL | Metro: Port St. Lucie, 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 | $2,190 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,590 |
| 4 Bedrooms | $3,750 |
| 5 Bedrooms | $4,350 |
| 6 Bedrooms | $4,872 |
| 7 Bedrooms | $5,262 |
| 8 Bedrooms | $5,525 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $300,683 | 0.88% | C |
| 3BR | $3,590 | $382,045 | 0.94% | C |
| 4BR | $3,750 | $456,237 | 0.82% | C |
| 5BR | $4,350 | $613,383 | 0.71% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 34984 in Port Saint Lucie, FL, provides valuable insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom property in this area for fiscal year 2024 is set at $2,020 per month. When annualized, this figure amounts to $24,240 annually. In contrast, the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $2,227 per month, equating to an annual rental income of $26,724.
To calculate the gross yield, we use the median home value of $391,405. For the Section 8 scenario, the annualized FMR of $24,240 translates to a gross yield of approximately 6.19%. This is derived by dividing the annual rental income by the median home value. On the other hand, using the market rent of $26,724 yields a gross return of about 6.83%.
Given the 15.8% renter density in the area, it's important to note that a significant portion of homeowners are likely to be owner-occupiers rather than landlords. This suggests that the demand for rental properties might be lower compared to areas with higher renter densities, making the Section 8 scenario potentially more viable for landlords seeking stable tenants.
The Days on Market (DOM) of 42 days indicates that rental properties are typically occupied relatively quickly. However, this does not necessarily translate to higher market rents being consistently achievable. Considering the lower FMR, landlords participating in the Section 8 program can still expect a reasonable gross yield without the risk associated with fluctuating market conditions.
In summary, while the market rent offers a slightly higher gross yield of 6.83%, the Section 8 option with a gross yield of 6.19% is more realistic given the local renter density and quick occupancy rates. Investors should weigh these factors carefully when deciding whether to participate in the Section 8 program or aim for market rents.
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.