Location: Aguadilla, PR | Metro: Aguadilla, PR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $550 |
| 1 Bedroom | $550 |
| 2 Bedrooms | $670 |
| 3 Bedrooms | $800 |
| 4 Bedrooms | $900 |
| 5 Bedrooms | $1,044 |
| 6 Bedrooms | $1,169 |
| 7 Bedrooms | $1,263 |
| 8 Bedrooms | $1,326 |
The ZIP code 00604 in Unknown, PR, presents several challenges for landlords and small-portfolio investors considering Section 8 investments. First, tenant turnover can be a significant issue when comparing the market rent to the Federal Market Rent (FMR) of $590 for FY 2024. While the exact market rent is not available, it's important to note that higher market rents may lead to tenants seeking better deals outside of Section 8, increasing turnover rates.
Vacancy exposure is another concern. With an unknown number of days on the market (DOM), landlords cannot accurately predict how long their properties might remain vacant. This uncertainty can impact cash flow and profitability, especially if vacancies persist longer than expected.
Deferred maintenance is also a risk factor, given the lack of data on typical home values and median incomes. Without these figures, it's difficult to assess the financial health of residents and their ability to manage any required maintenance costs, which could fall on the landlord. High deferred maintenance costs can quickly erode profits and necessitate significant upfront investment.
However, there are mitigating factors. The high renter density in ZIP 00604, represented by the unknown percentage of renter share, generally indicates a robust demand for rental housing. This demand often translates into a strong interest in Section 8 vouchers, which can help stabilize occupancy rates and provide a steady stream of income.
In conclusion, based on the available data, the risk for a first-time Section 8 landlord in ZIP 00604 is moderate. While there are uncertainties regarding market conditions and resident financial stability, the potential for stable occupancy due to high renter density provides a counterbalance to these risks.
Data Sources: FMR data from HUD (2027).
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.