Section 8 Fair Market Rent (FMR) for ZIP 00680 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$510
1 Bedroom	$530
2 Bedrooms	$580
3 Bedrooms	$720
4 Bedrooms	$900
5 Bedrooms	$1,044
6 Bedrooms	$1,169
7 Bedrooms	$1,263
8 Bedrooms	$1,326

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00680 (, PR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 00680 in Puerto Rico are as follows: - 0 Bedroom: $450 - 1 Bedroom: $470 - 2 Bedrooms: $520 (34.9% of median income) - 3 Bedrooms: $670 - 4 Bedrooms: $790 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent. However, without recent Zillow data, it is challenging to directly compare these FMRs to actual market rents. Given the median household income of $17,896, the 2BR FMR of $520 represents a significant portion of the average household’s income, indicating that affordability is a critical issue for renters in this area. #### Affordability & Renter Profile ZIP code 00680 has a population of 42,689, with 46.9% of residents being renters. This suggests a substantial rental market, but the occupancy rate of 69.0% indicates that there might be some underutilization of housing units, which could mean an oversupply of rental properties relative to demand. Given the median household income, it is likely that many renters rely on Section 8 vouchers to afford housing. The fact that the 2BR FMR is 34.9% of the median income implies that even with a voucher, tenants would still need to contribute a significant portion of their income towards rent. This high contribution percentage could make it difficult for low-income households to find affordable housing, especially if they have other financial obligations. #### Investor Angle From an investor perspective, the cash flow potential at FMR levels needs to be carefully evaluated. The FMRs are relatively low compared to typical rental rates in more affluent areas, but they must be considered alongside the local economic conditions and the availability of Section 8 vouchers. Assuming an investor purchases a property and rents it out at the FMR, the following scenarios emerge: - A 0BR unit at $450 per month. - A 1BR unit at $470 per month. - A 2BR unit at $520 per month. - A 3BR unit at $670 per month. - A 4BR unit at $790 per month. To determine whether this ZIP code is cash-flow positive, we need to consider the cost of acquisition, maintenance, and vacancy rates. If the purchase price and ongoing costs are low enough, renting at FMR could still be profitable. However, the occupancy rate of 69.0% suggests that there is a risk of vacancies, which could impact cash flow negatively. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high percentage of median income required for larger units, investors should focus on acquiring smaller units such as 0BR and 1BR properties. These units are more likely to be affordable for low-income households and thus have higher demand. For instance, a 0BR unit at $450 per month is only 2.5% of the median income, making it much easier for residents to afford. 2. **Consider Location and Amenities**: Since the occupancy rate is below 70%, it is crucial to choose properties that are well-located and offer amenities that appeal to potential tenants. Properties near essential services like schools, healthcare facilities, and public transportation are likely to attract more tenants and reduce vacancy risks. 3. **Understand Local Economic Conditions**: The median household income of $17,896 is quite low, and this should influence the type of properties you invest in. Investors should ensure that the rental income covers all expenses and provides a reasonable profit margin. Additionally, understanding the local job market and employment trends can help predict future demand for rental properties. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 00680 is **Hold**. While there is a significant rental market, the low median income and high percentage of income required for larger units suggest that the market is tight and potentially oversupplied. Investing in smaller units could be profitable, but the overall economic conditions and occupancy rate indicate that caution is warranted. Investors should thoroughly research the local market and consider the potential for vacancies before making any significant investments.

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.