Location: Arecibo, PR | Metro: Arecibo, PR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $480 |
| 1 Bedroom | $490 |
| 2 Bedrooms | $560 |
| 3 Bedrooms | $780 |
| 4 Bedrooms | $870 |
| 5 Bedrooms | $1,009 |
| 6 Bedrooms | $1,130 |
| 7 Bedrooms | $1,220 |
| 8 Bedrooms | $1,281 |
U.S. Census Bureau data (2024)
ZIP 00688, located in Arecibo, Puerto Rico MSA metro, serves as a diversifier within a Section 8 portfolio strategy. The renter share in this area is 37.6%, indicating a significant portion of the population relies on rental housing. This aligns well with the tenant base supported by Section 8 vouchers.
The median income of $18,023 in ZIP 00688 is notably low, suggesting that many residents would qualify for Section 8 assistance. The Federal Market Rent (FMR) for FY 2024 is set at $510, while the market rent is $568. This creates a $58 spread between the two, which can be managed by adjusting property maintenance and management costs to ensure profitability.
Although appreciation potential is marked as N/A, the high renter share makes this location suitable for investors looking to stabilize their cash flow through a reliable government-backed program. Section 8 provides consistent rental income, mitigating the risks associated with market fluctuations.
A diversification strategy using ZIP 00688 allows investors to spread risk across different types of investments. By including properties in areas with high renter shares and lower median incomes, landlords can balance their portfolios with a mix of market-rate and subsidized rentals.
To implement this strategy effectively, landlords should focus on maintaining properties to meet Section 8 standards and managing them efficiently to cover the $58 gap between FMR and market rent. Additionally, understanding local regulations and the specific needs of the community will be crucial for long-term success.
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.