Location: San Germán, PR | Metro: Mayagüez, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $440 |
| 1 Bedroom | $450 |
| 2 Bedrooms | $560 |
| 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 for ZIP code 00683 in California reveals a critical gap between the Fair Market Rent (FMR) and the actual market rent. Specifically, the FMR for the area is set at $500, while the market rent is reported at $482, based on recent Census American Community Survey (ACS) data. This indicates that the FMR is $18 higher than the market rent, representing a 3.73% premium.
In this scenario, where the FMR exceeds the market rent, voucher tenants present an attractive yield play for landlords and small-portfolio investors. The Section 8 program subsidizes rents up to the payment standard, which is calculated between 90% and 110% of the FMR. Given the FMR of $500, the payment standard could range from $450 to $550. Since the actual market rent is $482, landlords accepting voucher tenants can expect a consistent, government-backed income stream that matches or slightly exceeds the open-market rate.
The economic context of the area further supports this analysis. With 33.5% of residents renting and a median income of $18,543, the disparity between the FMR and market rent underscores the financial strain faced by many renters. Accepting voucher tenants allows landlords to tap into a stable revenue source while providing affordable housing options to those in need.
However, it is important to note that the median home value is not available for ZIP 00683, indicating a predominantly rental market. This lack of homeownership data suggests a focus on rental properties, making the Section 8 program a significant factor in the local real estate landscape.
To summarize, the gap between the FMR and market rent in ZIP 00683, CA, is $18 or 3.73%. This makes voucher tenants a reliable source of income for landlords, offering a yield play that aligns with the local economic conditions and the high percentage of renters.
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.