Government-Backed Income. All 8 units leased under Section 8 Housing Choice Voucher and HUD-VASH programs with guaranteed monthly payments directly from federal housing authorities.
100% Occupied. Fully leased on annual agreements with zero vacancy since renovation. Submarket vacancy for 1-2 Star properties is just 6.2%.
Fully Renovated. Complete interior and exterior renovation plus new roof in 2018. Minimal near-term capital expenditure requirements.
Strong Cash Flow. $94,589 NOI with a low 34.3% expense ratio. Above-market rents of $1,500/unit supported by Section 8 Fair Market Rent standards.
Supply-Constrained Submarket. Zero new deliveries in the past 12 months in Outer Boynton Beach. No 1-2 Star construction planned. Vacancy trending down.
| Cap Rate | 7.0% | 7.5% | 7.54% | 8.0% | 8.5% | 9.0% | 9.5% | 10.0% |
|---|---|---|---|---|---|---|---|---|
| Implied Value | $1,351,271 | $1,261,187 | $1,255,000 | $1,182,363 | $1,112,812 | $1,050,989 | $995,674 | $945,890 |
| Per Unit | $168,909 | $157,648 | $156,875 | $147,795 | $139,102 | $131,374 | $124,459 | $118,236 |
| Cap Rate | 7.0% | 7.5% | 8.0% | 8.5% | 9.0% | 9.5% | 10.0% |
|---|---|---|---|---|---|---|---|
| Implied Value | $910,429 | $849,733 | $796,625 | $749,765 | $708,111 | $670,842 | $637,300 |
| Per Unit | $113,804 | $106,217 | $99,578 | $93,721 | $88,514 | $83,855 | $79,663 |
Based on in-place owner NOI of $94,589, this represents a 7.54% cap rate — aligned with the top end of recent Outer Boynton Beach transactions and reflecting the Section 8 / HUD-VASH income premium with fully renovated condition. This positions the property competitively at $156,875 per unit, below the Outer Boynton Beach median of $180,000/unit per CoStar data.
| Strategy | Price | Per Unit | Owner Cap | Buyer Cap | Rationale |
|---|---|---|---|---|---|
| Aggressive | $1,350,000 | $168,750 | 7.01% | 4.72% | Targets below-median $/unit with renovated Section 8 premium |
| ★ Recommended | $1,255,000 | $156,875 | 7.54% | 5.08% | Best balance of seller proceeds and market-competitive pricing |
| Conservative | $1,180,000 | $147,500 | 8.02% | 5.40% | Higher yield attracts broader buyer pool; quick close likely |
| Value Floor | $1,050,000 | $131,250 | 9.01% | 6.07% | Absolute floor — fire sale territory below comp range |
| # | Address | City | Yr Built | Units | Sale Date | Price | $/Unit | $/SF | Cap Rate | Vacancy |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 320 NE 13th Ave | Boynton Beach | 1957 | 10 | 3/19/2026 | $1,715,000 | $171,500 | $404 | 7.7% | 0% |
| 2 | 301 SE 6th Ave | Delray Beach | 2020 | 9 | 2/25/2026 | $2,550,000 | $283,333 | $724 | — | 11.1% |
| 3 | 401 SE 23rd Ave | Boynton Beach | 1973 | 4 | 2/12/2026 | $930,000 | $232,500 | $353 | 6.8% | 0% |
| 4 | 617 NE 8th Ave | Boynton Beach | 1950 | 4 | 1/30/2026 | $610,000 | $152,500 | $381 | 4.0% | 0% |
| 5 | 627 NE 6th Ave | Boynton Beach | 1970 | 8 | 11/12/2025 | $1,440,000 | $180,000 | $275 | 6.2% | 0% |
| 6 | 977 Miner Rd (Tropical Villas) | Lantana | 1959 | 10 | 11/12/2025 | $1,300,000 | $130,000 | $236 | 7.0% | 90% |
| 7 | 352 W Pine St | Lantana | 1972 | 5 | 9/26/2025 | $910,000 | $182,000 | $194 | 5.7% | 0% |
| 8 | 115 S Oak St | Lantana | 1966 | 7 | 5/12/2025 | $1,500,000 | $150,000 | $429 | 6.8% | 0% |
| 9 | 925 S K St | Lake Worth | 1967 | 16 | 5/7/2025 | $3,300,000 | $206,250 | $386 | 7.0% | 6.3% |
| 10 | 130 SE 14th Ave | Boynton Beach | 2000 | 6 | 4/11/2025 | $1,045,000 | $261,250 | $233 | 5.0% | 0% |
| 11 | 701 S G St | Lake Worth | 1971 | 13 | 3/27/2025 | $2,075,000 | $159,615 | $198 | 6.8% | 7.7% |
| 12 | 1000 Palm Trl | Delray Beach | 1972 | 12 | 3/27/2025 | $5,650,000 | $470,833 | $386 | 5.2% | 0% |
| 13 | 1705-1709 NE 3rd Ave | Delray Beach | 1965 | 4 | 2/27/2025 | $2,865,000 | $716,250 | $729 | 7.0% | 0% |
| 14 | 107 SW 2nd Ave | Boynton Beach | 1975 | 4 | 11/4/2024 | $872,500 | $218,125 | $243 | 7.1% | 0% |
| 15 | 215 S Seacrest Blvd | Boynton Beach | 1935 | 4 | 11/4/2024 | $872,500 | $218,125 | $257 | 7.1% | 25% |
| 16 | 1018 S M St | Lake Worth | 1968 | 4 | 10/25/2024 | $820,000 | $205,000 | $274 | — | 0% |
| 17 | 1510 S Federal Hwy (Windsong) | Lake Worth | 1969 | 8 | 7/31/2024 | $1,200,000 | $150,000 | $225 | — | 0% |
| 18 | 717 NE 10th Ave | Boynton Beach | 1964 | 8 | 5/30/2024 | $1,950,000 | $243,750 | $307 | — | 0% |
| Property | Distance | Units | Yr Built | Avg SF | Rent/Unit | Rent/SF | Vacancy |
|---|---|---|---|---|---|---|---|
| 627 NE 6th Ave | — | 8 | 1970 | 600 | $1,725 | $2.86 | 0% |
| Ocean East Apts — 200 E Ocean Ave | 0.93 mi | 12 | 1971 | 791 | $1,228 | $1.55 | — |
| Sun Coast Apts — 416 W Boynton Beach Blvd | 0.62 mi | 12 | 1964 | 500 | $727 | $1.45 | — |
| 419 Circle Dr | 0.82 mi | 12 | 1979 | 955 | $1,115 | $1.17 | — |
| 717 NE 10th Ave | 0.97 mi | 8 | 1964 | — | $894 | — | — |
| 401 S Seacrest Blvd | 0.99 mi | 8 | 1962 | — | $983 | — | — |
| 320 NE 13th Ave | 0.66 mi | 10 | 1957 | — | $844 | — | — |
| East Boynton Apts — 132 NE 12th Ave | — | 6 | — | — | $982 | — | 0% |
| East Boynton Apts — 133 NW 10th Ave | — | 6 | — | — | $983 | $1.87 | 0% |
The subject's Section 8 rents of $1,500/unit significantly exceed the market average of $1,047/unit for comparable properties. This premium is supported by HUD Fair Market Rent (FMR) standards for Palm Beach County and represents a key investment advantage — government-guaranteed rents at above-market levels with no collection risk. 1BR rent comps in the area average $1,043/unit while the subject achieves $1,500/unit through its Section 8 / HUD-VASH programs.
| Year | Asking Rent/SF | Effective Rent/SF | Rent Growth | Vacancy | Concessions |
|---|---|---|---|---|---|
| 2026 (YTD) | $1.61 | $1.60 | 0.4% | 4.3% | 0.6% |
| 2025 | $1.61 | $1.60 | 1.3% | 4.6% | 0.6% |
| 2024 | $1.59 | $1.58 | 1.8% | 5.0% | 0.6% |
| 2023 | $1.56 | $1.55 | 2.2% | 4.6% | 0.6% |
| 2022 | $1.53 | $1.52 | 2.4% | 4.1% | 0.6% |
| 2021 | $1.49 | $1.48 | 3.0% | 3.4% | 0.5% |
| 2020 | $1.45 | $1.44 | 2.2% | 4.2% | 0.6% |
| 2019 | $1.42 | $1.41 | 1.6% | 4.9% | 0.6% |
| 2018 | $1.39 | $1.39 | 2.1% | 4.6% | 0.6% |
The Boynton Beach submarket is located in southeastern Palm Beach County between Delray Beach to the south and Lake Worth Beach to the north. Multifamily properties are most concentrated east of I-95, near downtown-adjacent areas.
Renter demand has remained relatively stable, with annual net absorption of ~260 units. The lack of new supply in 2025 helped Boynton Beach position itself as one of the tightest submarkets in Palm Beach County.
Vacancy at 5.2% is well below the 10-year average of 7.4% and below the Palm Beach metro rate of 6.8%.
Ownership is predominantly private with asset value distributed across numerous small- and mid-sized properties. Private buyers account for the majority of acquisitions with both local and non-local investors active.
| Segment | Vacancy | Rent/Unit | Rent/SF | Rent Growth |
|---|---|---|---|---|
| 4 & 5 Star | 3.9% | $2,422 | $2.31 | -0.1% |
| 3 Star | 4.2% | $2,100 | $1.94 | 2.2% |
| 1 & 2 Star ★ | 6.2% | $1,451 | $1.98 | -1.3% |
| Overall Market | 5.2% | $2,252 | $2.21 | 0.4% |
| Project | Units | Stories | Est. Delivery |
|---|---|---|---|
| Shalimar at Boynton Beach | 262 | 3 | Jun 2026 |
| The Villages at East Ocean | 371 | 7 | Feb 2027 |
| Dune Apartments | 336 | 8 | Oct 2027 |
| The Skye Apartment | 327 | 3 | Sep 2027 |
| Total | 1,296 |
Zero new 1-2 Star supply. All construction is 3-Star or higher — luxury/Class A product that does not compete directly with the subject property or its tenant base.
Zero deliveries past 12 months in the Outer Boynton Beach neighborhood. The last delivery was the 384-unit Elan Palm Reserve (Class A) in June 2024.
1-2 Star inventory is shrinking. CoStar projects negative absorption in this segment through 2030, reflecting demolitions and conversions. This is bullish for existing workforce housing — limited supply supports rents and occupancy.
| Geography | Low | Bot 25% | Median | Avg | Top 25% | High |
|---|---|---|---|---|---|---|
| Outer Boynton Beach | 4.0% | 4.0% | 6.8% | 6.0% | 7.3% | 7.7% |
| Boynton Beach | 4.0% | 4.9% | 6.6% | 6.3% | 7.5% | 7.7% |
| Palm Beach | 3.7% | 4.7% | 6.2% | 6.4% | 8.2% | 8.0% |
| United States | 1.0% | 4.4% | 6.1% | 6.4% | 9.0% | 25.0% |
| Year | Est. $/Unit | Est. Cap Rate | Volume | Deals | Avg $/Unit (Actual) | Turnover |
|---|---|---|---|---|---|---|
| 2026 YTD | $187,464 | 6.5% | $4.3M | 3 | $187,022 | 0.8% |
| 2025 | $185,295 | 6.5% | $30.7M | 17 | $199,253 | 6.5% |
| 2024 | $175,829 | 6.6% | $30.7M | 22 | $184,049 | 9.4% |
| 2023 | $168,788 | 6.7% | $21.8M | 15 | $178,879 | 5.7% |
| 2022 | $172,283 | 6.2% | — | — | — | — |
| Buyer | Bldgs | Units | Volume |
|---|---|---|---|
| The Dermot Company | 2 | 691 | $276,000,000 |
| Church of Jesus Christ of LDS | 2 | 668 | $254,882,000 |
| Grant Cardone | 1 | 366 | $235,000,000 |
| Brookfield Corporation | 2 | 884 | $216,621,153 |
| Mitsubishi Estate Co. | 1 | 476 | $193,000,000 |
| IMT Residential | 1 | 456 | $183,500,000 |
| The Related Companies | 4 | 335 | $152,850,000 |
| Ares Management | 1 | 284 | $139,687,600 |
| Year | Inventory | Deliveries | Absorption | Vacancy | Mkt Rent/Unit | Rent Growth |
|---|---|---|---|---|---|---|
| 2030 (F) | 16,532 | 186 | 198 | 5.5% | $2,456 | 1.9% |
| 2029 (F) | 16,346 | 172 | 217 | 5.7% | $2,411 | 1.9% |
| 2028 (F) | 16,174 | 125 | 349 | 6.0% | $2,367 | 2.0% |
| 2027 (F) | 16,049 | 1,056 | 673 | 7.5% | $2,319 | 2.4% |
| 2026 YTD | 14,993 | 258 | 292 | 5.4% | $2,265 | 0.3% |
| 2025 | 14,735 | 0 | 231 | 5.7% | $2,258 | 0.4% |
| 2024 | 14,735 | 514 | 271 | 7.3% | $2,248 | 0% |
| 2023 | 14,221 | 319 | 328 | 5.9% | $2,248 | -0.5% |
| 2022 | 13,902 | 223 | 223 | 6.0% | $2,260 | 2.4% |
| 2021 | 13,679 | 348 | 950 | 6.1% | $2,206 | 23.3% |
| 2020 | 13,331 | 1,045 | 712 | 10.8% | $1,789 | 3.9% |
| Year | Inventory | Deliveries | Vacancy | Mkt Rent/Unit | Growth |
|---|---|---|---|---|---|
| 2030 | 2,810 | 0 | 6.9% | $1,615 | 2.7% |
| 2029 | 2,810 | 0 | 6.7% | $1,573 | 2.9% |
| 2028 | 2,811 | 0 | 6.4% | $1,529 | 2.9% |
| 2027 | 2,811 | 0 | 6.3% | $1,485 | 2.7% |
| 2026 | 2,811 | 0 | 6.4% | $1,446 | 0.2% |
Zero new 1-2 Star construction is projected through 2030. The segment's inventory is slowly declining as older buildings are demolished or converted.
Market rents in this segment are forecast to grow 2.7-2.9% annually from 2027-2030, outpacing the overall market.
This creates a uniquely favorable dynamic: declining supply + growing rents = structural tailwind for existing workforce housing assets.
Professional photography & drone aerial imagery
Full video walkthrough & virtual tour production
Comprehensive Offering Memorandum (OM) preparation
CoStar underwriting & market analysis package
Financial proforma & rent roll documentation
Due diligence file assembly (surveys, title, tax records)
Targeted email campaigns to qualified buyer database
CoStar, LoopNet, Crexi, and CREXi marketplace listings
MLS listing with full commercial data syndication
Direct outreach to Section 8 / affordable housing investors
1031 exchange buyer targeting
Social media promotion across LinkedIn & investor networks
Offer review, negotiation & counter-offer strategy
Buyer qualification verification (POF / pre-approval)
Inspection coordination & remediation negotiation
Section 8 lease assignment & HAP contract guidance
Title & closing coordination with all parties
Post-close transition support for new ownership
| Risk Factor | Level | Mitigation Strategy |
|---|---|---|
| Market Vacancy | Low | Subject is 100% occupied with Section 8 leases. Submarket vacancy is 5.2%, trending down. Zero competing supply in 1-2 Star segment. |
| Interest Rate Impact | Moderate | Higher rates compress buyer leverage, but strong 7.5%+ cap rate provides positive spread over borrowing costs. Government income de-risks lending. |
| Insurance Costs | Moderate | Florida hurricane insurance remains elevated. Budget $12K-$16K for buyer with hurricane coverage. Frame construction in non-coastal zone helps. |
| Tax Reassessment | Moderate | Palm Beach County will reassess at sale price. Current $11,411 on ~$600K basis; expect ~$23,750 at $1.255M. Factored into buyer-adjusted NOI. |
| Section 8 Program | Low | Federal program with bipartisan support. HAP contracts transfer to new owner. HUD-VASH has dedicated VA funding. Annual rent adjustments tied to FMR. |
| Deferred Maintenance | Low | Full renovation in 2018 including new roof, interiors, and exteriors. Minimal near-term CapEx expected. |
| Neighborhood Profile | Moderate | Outer Boynton Beach workforce neighborhood. Priced accordingly with higher cap rate reflecting location. Section 8 tenant base is stable and long-term. |