Location: San Juan-Guaynabo, 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)
To determine if you should buy in ZIP code 00674 for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $610 cover the debt service on a property?
No data is available to calculate the exact debt service for properties in ZIP 00674. Without knowing the mortgage rate, property tax, insurance, and maintenance costs, it's impossible to determine if $610 can clear the debt service.
2) How does the market rent of $538 compare to the FMR?
The market rent of $538 is below the FMR of $610. This indicates that properties in ZIP 00674 could potentially be rented out at higher rates through the Section 8 program compared to the local market.
3) Is there sufficient rental demand in ZIP 00674?
The rental demand is influenced by two factors: the percentage of renters and the days on market (DOM).
ZIP 00674 has a significant rental population, with 25.1% of residents being renters. However, without the average DOM for rental listings, it's challenging to assess the overall demand accurately. A low DOM would suggest strong demand, whereas a high DOM might indicate weaker demand.
If the FMR of $610 cannot cover the debt service, purchasing a property for Section 8 in ZIP 00674 is not advisable.
If the FMR of $610 can cover the debt service and the market rent is below the FMR, then proceed to evaluate the rental demand.
Note: The lack of specific data on DOM and debt service makes it difficult to provide a definitive recommendation. It's crucial to gather these details before making an investment decision.
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.