Location: Barranquitas-Aibonito, PR | Metro: San Juan-Guaynabo, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $510 |
| 1 Bedroom | $520 |
| 2 Bedrooms | $600 |
| 3 Bedrooms | $790 |
| 4 Bedrooms | $950 |
| 5 Bedrooms | $1,102 |
| 6 Bedrooms | $1,234 |
| 7 Bedrooms | $1,333 |
| 8 Bedrooms | $1,400 |
U.S. Census Bureau data (2024)
ZIP code 00638, located in Ciales, Puerto Rico, presents a unique real estate investment scenario for landlords and small-portfolio investors. Let's break down the classification based on yield and stability.
Yield: The Fair Market Rent (FMR) for FY 2024 is $530, while the market rent stands at $371. Given that the FMR is significantly higher, this indicates a potential high-yield market. However, it's important to note that the median home value is listed as N/A, suggesting that rental properties might be more prevalent than owner-occupied homes in this area.
Stability: With 27.1% of the population being renters, the market leans towards a moderate level of stability. The median household income in ZIP 00638 is $19,796, which is lower compared to many mainland U.S. markets but slightly above the state average. This suggests that while there is a demand for rental properties, the ability to pay higher rents could be limited. Additionally, the lack of data on days on market (DOM) makes it challenging to assess the speed at which properties are rented out, which is another indicator of stability.
The combination of a relatively high FMR and a significant portion of renters suggests that this is not a high-yield/low-stability 'flip-style' market. Instead, it falls somewhere in between, offering steady cash flow with moderate potential for yield. Investors should consider the lower median income when setting rental prices to ensure occupancy and maintain a steady cash flow.
To summarize, ZIP 00638 is best classified as a steady-cashflow zone, with the potential for higher yields if rental prices are set appropriately relative to the market and the income levels of the residents. The key figures driving this classification are the $530 FMR versus the $371 market rent and the 27.1% renter population, alongside the $19,796 median household income.
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.