Location: Puerto Rico HUD Nonmetro Area, Unknown | Metro: Guayama, PR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $520 |
| 1 Bedroom | $540 |
| 2 Bedrooms | $590 |
| 3 Bedrooms | $800 |
| 4 Bedrooms | $850 |
| 5 Bedrooms | $986 |
| 6 Bedrooms | $1,104 |
| 7 Bedrooms | $1,192 |
| 8 Bedrooms | $1,252 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 00704, located in GU County, revolve around the SAFMR (Small Area Fair Market Rent) and the local market rent rates. For a two-bedroom apartment in FY 2024, the SAFMR is set at $510. This figure represents the maximum amount that the Section 8 program will pay for rent in this specific ZIP code. However, the local market rent for a similar unit runs higher at $653 according to Census ACS data.
A landlord participating in Section 8 receives payments from the government based on the SAFMR, but the actual reimbursement involves more than just the base rent. The total reimbursement includes the tenant's portion of the rent plus any utility allowances. Typically, the tenant is responsible for paying approximately 30% of their income towards rent. If we assume an average tenant income of $1,500 per month, the tenant would pay $450 towards rent. The remaining amount, up to the SAFMR limit, is covered by the housing authority. In this case, the housing authority would cover the difference between the tenant's payment and the SAFMR, which is $510 - $450 = $60.
In addition to the rent reimbursement, there are utility allowances. These allowances vary depending on the region and the size of the apartment. For ZIP 00704, let's assume the utility allowance for a two-bedroom apartment is $200 per month. This brings the total reimbursement to $510 (rent) + $200 (utilities) = $710.
Given these specifics, a landlord can expect to receive a total reimbursement of $710 per month for a two-bedroom apartment under the Section 8 program. Since the local market rent is $653, the landlord would actually be receiving more than the market rate when considering both the rent and utility reimbursements. The surplus here is $710 - $653 = $57 per month, meaning landlords could potentially earn above the typical market rate if they factor in the utility allowance.
This analysis shows that while the SAFMR sets a cap on rent reimbursement, the inclusion of tenant contributions and utility allowances can result in a positive outcome for landlords, especially when compared to the lower SAFMR versus the higher local market rent. Landlords should understand that the reimbursement is structured to ensure affordability for tenants while providing a stable source of income for property owners.
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.