Section 8 Fair Market Rent (FMR) for ZIP 00627 - 2027

Location: Arecibo, PR | Metro: Arecibo, PR MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$480
1 Bedroom	$490
2 Bedrooms	$560
3 Bedrooms	$780
4 Bedrooms	$870
5 Bedrooms	$1,009
6 Bedrooms	$1,130
7 Bedrooms	$1,220
8 Bedrooms	$1,281

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

32,734

Median Household Income

$27,411

Housing Units

14,747

Renter Percentage

24.1%

Occupancy Rate

84.3%

Renter Occupied

2,995

To decide whether to invest in ZIP code 00627 for Section 8 properties, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $540 cover debt service?

If Yes: Proceed to Step 2.
If No: Do not purchase here. The FMR does not sufficiently cover the costs associated with maintaining a property, leading to financial losses.

Step 2: Compare the market rent of $611 to the FMR.

If Market Rent is Above FMR: This indicates that there is potential for higher returns outside of Section 8. However, landlords should still consider the demand for Section 8 properties.
If Market Rent is At or Below FMR: It suggests that the market conditions align closely with the FMR, making Section 8 a viable option for rental income stability.

Step 3: Evaluate the rental demand. With 24.1% of residents being renters and the average days on the market (DOM) not specified, consider the following:

If Demand is High: Given the 24.1% of renters, there is sufficient demand if the DOM is low, indicating quick property turnover. This makes ZIP 00627 a good investment area for Section 8 properties.
If Demand is Low: A high DOM would suggest a slow market for rentals, making it less attractive for Section 8 investments. Landlords should look for other areas with better demand.
If Demand is Moderate: The decision will depend on the balance between the FMR covering debt service and the market rent providing additional revenue. Landlords must weigh the risks and benefits carefully.

Summary: For ZIP 00627, the FMR of $540 is lower than the market rent of $611, suggesting that while Section 8 tenants can provide stable income, there might be opportunities for higher returns by renting to non-Section 8 tenants. However, without a specific DOM figure, it's challenging to assess the overall demand accurately. If the DOM is low, the high percentage of renters could support a strong demand for Section 8 units. If the DOM is high, landlords should reconsider their investment strategy in this area.

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.