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 market analysis for Section 8 investors targeting ZIP code 00605 in Aguadilla, Puerto Rico, reveals a unique opportunity. The Fair Market Rent (FMR) set by HUD for this area for fiscal year 2024 is $590 per month. However, the current market rent data is unavailable, making it challenging to provide a direct comparison.
Given the FMR figure, landlords can expect that voucher tenants will cashflow at the FMR rate, assuming the market rent does not exceed this amount. Without specific market rent data, we cannot definitively state if voucher tenants would cashflow marginally or only with premium units, but typically in areas with lower economic activity, such as some parts of Puerto Rico, the FMR tends to align closely with market rents.
The median home value in ZIP 00605 is also not available, which means deriving an exact rent-to-price ratio is impossible. However, this lack of data suggests that the housing market might be less volatile, providing a stable environment for long-term investments. A stable housing market often correlates with steady rental income, which is beneficial for Section 8 investors looking for consistent cash flow.
The days on market (DOM) and the percentage of price cuts are not provided, indicating that there might be limited data on the local real estate transactions. This could mean that the market is relatively quiet, with fewer sales and rentals, which might not significantly impact the rent-versus-buy dynamics. However, the absence of these metrics should be considered when evaluating the potential for appreciation or stability in the investment.
The strongest investor angle in ZIP 00605 appears to be stability. Given the limited availability of market data and the specific FMR rate, investors can anticipate a predictable and steady cash flow, which is particularly attractive in the context of Section 8 properties. Stability ensures that the investment remains secure over time, unaffected by rapid market fluctuations.
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.