Section 8 Fair Market Rent (FMR) for ZIP 00693 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$530
1 Bedroom	$540
2 Bedrooms	$630
3 Bedrooms	$820
4 Bedrooms	$1,000
5 Bedrooms	$1,160
6 Bedrooms	$1,299
7 Bedrooms	$1,403
8 Bedrooms	$1,473

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00693 (Puerto Rico) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 00693 is set by HUD for 2026 and ranges from $500 for a 0-bedroom unit to $930 for a 4-bedroom unit. These figures represent the maximum amount that a Section 8 voucher holder can pay for rent in this area. However, without recent Zillow data, it’s challenging to directly compare these FMRs to actual market rents. Typically, FMRs are designed to reflect the average market rent for a modest home in good condition, but they do not always align perfectly with local rental prices. Given the FMRs, a significant constraint for voucher holders is the limited budget available for housing. For instance, a 2-bedroom unit has an FMR of $600, which represents 29.3% of the median household income ($24,596). This suggests that voucher holders must be selective about their living arrangements due to the tight budget constraints imposed by the program. #### Affordability & Renter Profile ZIP code 00693 has a population of 55,387, with 25.4% of residents being renters. The occupancy rate stands at 80.2%, indicating that the majority of housing units are occupied, but there is still some room for new tenants. Given the median household income of $24,596, affordability is a critical issue for many residents. The fact that a 2-bedroom unit's FMR is already consuming nearly 30% of the median income highlights the financial strain on renters. This ZIP code likely attracts low-income families who rely heavily on government assistance programs such as Section 8. The high percentage of renters and the relatively low median income suggest that the market is tight, with demand outpacing supply for affordable units. Landlords who offer units within the FMR range are likely to have a steady stream of potential tenants, but those charging above FMR might struggle to find tenants willing to pay the higher rates. #### Investor Angle From an investor perspective, the key question is whether properties rented at FMR levels can generate positive cash flow. To assess this, we need to consider the typical operating expenses and mortgage payments associated with rental properties in this area. While specific data on property values and operating costs are not provided, we can infer that renting at FMR levels would be challenging to achieve positive cash flow given the low median income and the relatively high cost of living in Puerto Rico. Assuming a conservative estimate for operating expenses and mortgage payments, let's break down the potential cash flow: - A 2-bedroom unit at $600 per month would need to cover property taxes, insurance, maintenance, and mortgage payments. If we assume a total of $400 in monthly expenses, this leaves only $200 in potential profit, which is very thin margin. - Similarly, a 3-bedroom unit at $780 per month would need to cover similar expenses, leaving a slightly better margin but still not substantial. Given these considerations, the investment grade for properties in this ZIP code would likely be rated as low to medium. The primary risk factors include the limited ability of tenants to pay more than the FMR, the potential for high vacancy rates if landlords charge above FMR, and the overall economic conditions in Puerto Rico. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on smaller units like 0BR and 1BR apartments, where the FMR is lower ($500 and $520 respectively). These units are more likely to attract Section 8 voucher holders and can potentially provide a better cash flow position relative to larger units. 2. **Maintain Affordable Pricing**: To ensure steady occupancy, landlords should maintain rents within the FMR range. For example, a 2BR unit should be priced at $600 or less to remain attractive to voucher holders. This will help mitigate the risk of vacancies and ensure a stable tenant base. 3. **Consider Property Location**: Given the tight market, investors should prioritize properties in well-located areas within ZIP code 00693. Properties near essential services, schools, and public transportation are likely to be more desirable to low-income families and thus easier to rent out. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 00693 is to **Hold**. The market dynamics indicate a tight rental market with a significant portion of residents relying on government assistance. While the potential for positive cash flow exists, it is limited, and the risk of vacancies is present if rents exceed the FMR. Therefore, maintaining existing properties at affordable pricing and focusing on smaller units would be the most prudent strategy. Investing in new properties or significantly upgrading existing ones may not yield sufficient returns to justify the capital expenditure.

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.