Location: Puerto Rico HUD Nonmetro Area, Unknown | Metro: San Germán, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $550 |
| 1 Bedroom | $570 |
| 2 Bedrooms | $620 |
| 3 Bedrooms | $840 |
| 4 Bedrooms | $890 |
| 5 Bedrooms | $1,032 |
| 6 Bedrooms | $1,156 |
| 7 Bedrooms | $1,248 |
| 8 Bedrooms | $1,310 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 00647 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $520, while the Census American Community Survey (ACS) indicates that the market rent is $466. This represents a gap of $54, or approximately 11.6%, where the FMR exceeds the market rent.
In this scenario, landlords and small-portfolio investors should consider the benefits of accepting Section 8 voucher tenants. The higher FMR rate ensures that voucher holders can pay a rent amount that is closer to the FMR, thus providing a more stable and predictable cash flow compared to the open-market rates. This makes ZIP 00647 a favorable location for a yield play, where the consistent rental income from voucher tenants can lead to higher returns on investment.
Given the local context in California, where 29.7% of residents are renters and the median household income stands at $20,023, it's evident that many residents rely on affordable housing options. Accepting Section 8 tenants helps fill this need while also allowing landlords to capitalize on the government subsidy that bridges the gap between market rent and what voucher recipients can afford. This strategy not only supports the community but also provides a reliable source of income that is less susceptible to market fluctuations.
The absence of a median home value figure suggests that the area may be predominantly rental-focused, further reinforcing the importance of Section 8 vouchers in maintaining a steady rental market. By aligning with the FMR rather than the lower market rent, landlords can ensure they are receiving a fair rate for their properties, making the acceptance of Section 8 tenants a strategic decision that benefits both the investor and the local community.
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.