Section 8 Fair Market Rent (FMR) for ZIP 34997 - 2027

Investment Score for ZIP 34997

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	$1,710
1 Bedroom	$1,720
2 Bedrooms	$2,070
3 Bedrooms	$2,800
4 Bedrooms	$2,930
5 Bedrooms	$3,399
6 Bedrooms	$3,807
7 Bedrooms	$4,112
8 Bedrooms	$4,318

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,720	$148,009	1.16%	B
2BR	$2,070	$279,986	0.74%	D
3BR	$2,800	$483,672	0.58%	F
4BR	$2,930	$720,145	0.41%	F
5BR	$3,399	$847,950	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 34997 (Stuart, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 34997 in Stuart, Florida, for 2026 indicate that the rent for a two-bedroom unit is $1750. This represents 26.9% of the median household income of $78,136, suggesting that it is relatively affordable for local residents. However, the actual rental market dynamics need to be considered to understand how these figures impact Section 8 voucher holders. According to the data, the Zillow median price for a two-bedroom home is $280,869, which translates to a price-to-FMR ratio of 13.4x. This high ratio indicates that the cost of purchasing a property is significantly higher than the rent it can generate. For voucher holders, the FMR serves as the maximum amount that the government will pay towards their housing costs. Therefore, landlords must ensure that their rents do not exceed these limits to remain eligible for Section 8 vouchers. Given the occupancy rate of 87.6%, there is a strong demand for rental properties in Stuart. However, only 19.1% of the population are renters, which means that the majority of residents own their homes. This could lead to competition among landlords to attract voucher holders, potentially driving rents closer to the FMR levels. #### Affordability & Renter Profile The median household income of $78,136 suggests that Stuart is a middle-class community. The 19.1% of the population who are renters likely include a mix of individuals and families with varying income levels. Given that the FMR for a two-bedroom unit is $1750, which is 26.9% of the median income, it implies that the average renter might find it challenging to afford higher rents without assistance. The tight market conditions, evidenced by the high occupancy rate, suggest that there is limited supply of rental units relative to demand. This could make it difficult for renters to find affordable options, especially if they are not receiving government assistance. The median income level also indicates that many residents might be on the borderline of needing assistance to cover their housing costs, making the Section 8 program particularly relevant for those who qualify. #### Investor Angle From an investor perspective, the key question is whether the FMR levels provide sufficient cash flow to justify investment in the area. With a two-bedroom unit renting for $1750, the potential cash flow needs to be evaluated against the purchase price and ongoing expenses such as maintenance, insurance, and property taxes. Given the Zillow median price of $280,869 for a two-bedroom home, the price-to-FMR ratio of 13.4x suggests that the property value is much higher than the rent it generates. This high ratio typically indicates that the market is overvalued relative to rental yields, which could make it challenging for investors to achieve positive cash flow purely from rental income. To determine the investment grade, we need to consider additional factors such as property appreciation, potential for rental increases, and the overall stability of the local economy. Stuart's median income and population size suggest a stable economic environment, but the high price-to-FMR ratio is a significant concern for cash flow-focused investors. #### Specific Actionable Insights 1. **Focus on Units Below FMR Levels**: Investors should look for rental properties that are priced below the FMR levels to maximize the likelihood of attracting Section 8 voucher holders. For example, a two-bedroom unit renting for $1600 would be more attractive to voucher holders than one renting for $1750. 2. **Consider Multi-Family Properties**: Given the high price-to-FMR ratio, single-family homes might not provide the best cash flow. Multi-family properties, such as duplexes or small apartment buildings, could offer better returns due to economies of scale and the ability to spread fixed costs across multiple units. 3. **Evaluate Property Appreciation Potential**: While the rental yield might be low, the potential for property appreciation in Stuart could still make it a worthwhile investment. If the property value increases over time, investors could benefit from capital gains even if cash flow is modest. #### Bottom Line For Section 8-focused investors, the ZIP code 34997 in Stuart, Florida, presents a mixed picture. On one hand, the high occupancy rate and demand for rental units make it an attractive location. On the other hand, the high price-to-FMR ratio and limited number of renters suggest that achieving positive cash flow purely from rental income could be challenging. **Recommendation**: **Hold**. Investors should hold off on purchasing single-family homes in this ZIP code unless they can secure properties well below the FMR levels. Multi-family properties might offer better opportunities, but thorough due diligence is required to ensure that the investment aligns with the goals of positive cash flow and long-term appreciation.

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.