Location: Puerto Rico HUD Nonmetro Area, Unknown | Metro: Puerto Rico HUD Nonmetro Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $460 |
| 1 Bedroom | $470 |
| 2 Bedrooms | $520 |
| 3 Bedrooms | $700 |
| 4 Bedrooms | $740 |
| 5 Bedrooms | $858 |
| 6 Bedrooms | $961 |
| 7 Bedrooms | $1,038 |
| 8 Bedrooms | $1,090 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 real estate scenario in ZIP 00664, Jayuya, Puerto Rico, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 00664 is set at $490 for fiscal year 2024, while the market rent, according to Census ACS data, stands at $456. This means that the FMR exceeds the market rent by $34, or approximately 7.4%.
In this context, where the FMR is higher than the market rent, the presence of voucher tenants can transform the investment into a yield play. Landlords who accept Section 8 vouchers can benefit from a guaranteed income stream that is slightly above the current market rates. This situation allows landlords to receive a rent subsidy that covers the difference between the FMR and the tenant's portion of the rent, thus ensuring a steady and predictable income.
However, it is important to note that the median income in ZIP 00664 is $21,767, which is relatively low compared to the overall cost of living. With 37.7% of the population being renters, the demand for affordable housing is high. Landlords should consider the potential challenges associated with managing properties under the Section 8 program, including stricter property inspections and maintenance requirements.
Given the specific economic conditions in ZIP 00664, the decision to participate in the Section 8 program should be made with an understanding of the broader community needs and the financial implications. The analysis indicates that while there might be a slight premium in accepting voucher tenants, the overall strategy must align with the landlord's goals and tolerance for regulatory oversight.
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.