Location: San Juan-Guaynabo, PR | Metro: San Juan-Guaynabo, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $630 |
| 1 Bedroom | $640 |
| 2 Bedrooms | $750 |
| 3 Bedrooms | $980 |
| 4 Bedrooms | $1,190 |
| 5 Bedrooms | $1,380 |
| 6 Bedrooms | $1,546 |
| 7 Bedrooms | $1,670 |
| 8 Bedrooms | $1,754 |
U.S. Census Bureau data (2024)
The ZIP code 00646 in Puerto Rico presents several challenges for landlords considering Section 8 investments. First, tenant turnover could be higher due to the difference between the market rent of $700 and the Fair Market Rent (FMR) set at $680 for FY 2024. This discrepancy might lead to tenants seeking properties that fully cover their rent through vouchers, leaving less desirable options for landlords who do not participate in the program.
Vacancy exposure is another significant concern. The days on market (DOM) data is currently unavailable, which means landlords cannot predict how long it might take to find a new tenant. Given the reliance on voucher holders, extended vacancies could result in substantial financial losses during periods when units are unoccupied.
Deferred maintenance exposure is also notable. With a median income of $36,265, residents may struggle to afford substantial repairs or upgrades, leading to potential maintenance issues that could become the landlord's responsibility. Without a typical home value figure, it's challenging to gauge the overall financial health of the housing stock in the area.
However, these risks must be weighed against the high concentration of renters in the area, with a 21.3% renter share. High renter density often translates into greater demand for rental properties, particularly those accepting Section 8 vouchers. This demand can stabilize occupancy rates and mitigate some of the risks associated with vacancy and tenant turnover.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 00646.
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.