Location: Arecibo, PR | Metro: Arecibo, PR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $510 |
| 1 Bedroom | $510 |
| 2 Bedrooms | $590 |
| 3 Bedrooms | $820 |
| 4 Bedrooms | $920 |
| 5 Bedrooms | $1,067 |
| 6 Bedrooms | $1,195 |
| 7 Bedrooms | $1,291 |
| 8 Bedrooms | $1,356 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 00616 within the Arecibo, PR MSA reveals several key insights for landlords and small-portfolio investors.
Firstly, regarding the rent math, it does not favor landlords. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $510, while the market rent based on Census ACS data stands at $655. This means that properties priced at the market rate of $655 exceed the FMR by $145, potentially making them less attractive to tenants who rely on housing assistance programs.
Secondly, the acquisition affordability is challenging due to insufficient data. The median home value, days on market (DOM), and percentage of homes that had their price cut are all marked as N/A, which suggests that acquiring properties in this area might be difficult to assess without additional research. This lack of specific data makes it hard to determine if the current market offers affordable opportunities for investment.
Lastly, there is a notable tenant demand. With a population of 9,717, and 26.3% of residents being renters, there are approximately 2,552 potential tenants in the ZIP code. This indicates a substantial pool of individuals seeking rental properties, which could support a landlord's business model.
Verdict: While there is a significant tenant demand in ZIP 00616, the rent math currently works against landlords, as the market rent exceeds the FMR by a considerable margin. Furthermore, the absence of critical data on property values and market conditions hinders a thorough assessment of acquisition affordability. Landlords and investors must carefully weigh these factors before entering the market, focusing on the potential for securing tenants willing to pay above the FMR while navigating the uncertainties of property acquisition costs.
Data Sources: FMR data from HUD (2027). 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.