Section 8 Fair Market Rent (FMR) for ZIP 00662 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$500
1 Bedroom	$500
2 Bedrooms	$610
3 Bedrooms	$730
4 Bedrooms	$820
5 Bedrooms	$951
6 Bedrooms	$1,065
7 Bedrooms	$1,150
8 Bedrooms	$1,208

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00662 (Ponce, PR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 00662, which is located in Ponce, Puerto Rico, provide a benchmark for rental costs that are eligible under the Section 8 housing assistance program. The FMRs for 2026 are as follows: - 0 Bedroom: $480 - 1 Bedroom: $480 - 2 Bedrooms: $560 (28.8% of median income) - 3 Bedrooms: $680 - 4 Bedrooms: $750 To understand how these FMRs compare to actual rents, we would typically refer to recent Zillow data. However, since there is no recent Zillow data available for ZIP code 00662, we must rely on other sources to infer the actual rent levels. Given the high percentage of renters (33.1%) and the occupancy rate (68.8%), it suggests that the rental market might be somewhat tight, but not extremely so. One constraint for voucher holders is that they can only use their vouchers for units that do not exceed the FMR. If actual rents are higher than these figures, voucher holders will have limited options, potentially leading to a mismatch between supply and demand for affordable housing. #### Affordability & Renter Profile The median household income in ZIP code 00662 is $23,299, indicating a relatively low-income area. With 33.1% of residents being renters, the demand for rental properties is significant. However, the occupancy rate of 68.8% suggests that while there is a substantial rental market, it is not oversupplied. This implies that there could be a moderate level of competition among renters for available units. Given that the 2-bedroom FMR ($560) represents 28.8% of the median income, it is clear that the cost of renting is quite manageable for the average resident. This affordability is likely a key factor in attracting renters to the area. However, the low median income also means that many residents may struggle to afford higher rents, making them heavily reliant on Section 8 vouchers. #### Investor Angle From an investor perspective, the cash flow potential in ZIP code 00662 depends on whether actual rents align closely with the FMRs. Since we lack recent Zillow data, we cannot provide a precise comparison. However, based on the FMRs and the median income, it appears that the rents are generally affordable for the local population. Investors should consider the following factors: - **Rent Levels**: If actual rents are close to the FMRs, then the investment would be cash-flow positive. For instance, a 2-bedroom unit at $560 per month would generate a monthly income of $560. - **Investment Grade**: Given the relatively low median income and the reliance on Section 8 vouchers, the investment grade for this ZIP code would be considered lower risk but also lower reward. The primary tenant pool would consist of low-income individuals who are dependent on government assistance, which can provide stability but limits the ability to increase rents significantly. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the FMRs and the median income, smaller units (0BR and 1BR) are more likely to be rented by voucher holders. Investing in properties with multiple small units could maximize cash flow and ensure a steady stream of tenants. For example, a 1BR unit at $480 per month would be fully covered by the voucher and would not require additional out-of-pocket expenses for tenants. 2. **Consider Multi-Family Properties**: Multi-family properties can offer economies of scale and diversify the tenant base. A property with several 2BR units at $560 each would generate a total monthly income of $560 per unit, which is feasible given the local income levels. Additionally, multi-family properties often have higher occupancy rates, reducing the risk of vacancy. 3. **Monitor Local Rental Trends**: While Zillow data is not available, monitoring local rental trends through other sources such as real estate agents, local listings, and community forums can provide insights into actual rent levels. This will help investors make informed decisions about pricing and potential returns. #### Bottom Line For Section 8-focused investors, ZIP code 00662 presents a **Hold** recommendation. The area has a significant number of renters who are likely to rely on Section 8 vouchers, providing a stable tenant pool. However, the low median income and the fact that FMRs represent a large portion of this income suggest that there is little room for rent increases. Therefore, while the investment is likely to be cash-flow positive, the potential for high returns is limited. Investors should focus on properties with smaller units and multi-family structures to optimize their portfolio in this ZIP code.

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.