Section 8 Fair Market Rent (FMR) for ZIP 00614 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 00614, located in Arecibo County, Puerto Rico, hinge on understanding the Subsidy Allocation Fair Market Rent (SAFMR) and how it interacts with the local rental market. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $510. This figure represents the maximum amount the government will pay toward a tenant's rent under the Section 8 Housing Choice Voucher program.

The SAFMR is crucial because it determines the subsidy level for tenants. Tenants are required to contribute a portion of their income towards rent, typically around 30%. Once this contribution is made, the government covers the remainder up to the SAFMR limit. However, if the market rent exceeds $510, the landlord must accept the SAFMR as the maximum reimbursement, which can create a reimbursement gap.

To illustrate, let’s assume a tenant's portion of the rent is calculated based on an average income and comes to $150 per month. The government would then cover the difference between the tenant's payment and the SAFMR, up to $510. If utilities are included in the voucher, additional allowances might be available, but these are usually modest and do not significantly alter the overall reimbursement rate.

In ZIP 00614, the local market rent data is currently unavailable, making it challenging to provide a direct comparison. However, landlords should be aware that the SAFMR is a fixed cap and does not adjust based on individual market conditions beyond this figure. Therefore, if the market rent for a two-bedroom apartment is higher than $510, landlords will face a shortfall unless they can find other ways to offset the difference.

In summary, for a two-bedroom apartment in ZIP 00614, the government will reimburse up to $510 per month, with the tenant contributing a portion of their income towards the rent. Given the lack of current market rent data, landlords should prepare for a potential reimbursement gap if the actual rent exceeds the SAFMR. Conversely, if the market rent is lower, there might be a surplus, though this is less likely given the SAFMR figure.

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.