Location: Puerto Rico HUD Nonmetro Area, Unknown | Metro: Barranquitas-Aibonito, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $480 |
| 1 Bedroom | $490 |
| 2 Bedrooms | $550 |
| 3 Bedrooms | $720 |
| 4 Bedrooms | $770 |
| 5 Bedrooms | $893 |
| 6 Bedrooms | $1,000 |
| 7 Bedrooms | $1,080 |
| 8 Bedrooms | $1,134 |
U.S. Census Bureau data (2024)
The rental landscape in ZIP code 00705, located in Guam, presents a unique set of challenges and opportunities for landlords and small-portfolio investors. The median income for households in this area stands at $21,712, which is significantly lower than the national average. Given this economic context, the market rate for rentals at $481 per month poses a substantial affordability barrier for many residents.
Comparatively, the Fair Market Rent (FMR) as determined by the government for this ZIP code in fiscal year 2024 is set at $590. This indicates that the government is willing to pay more for housing vouchers than what the current market rate suggests. However, it also highlights a significant gap between the median income and both the market rate and FMR, suggesting that many renters may struggle to find affordable housing without assistance.
With 25.0% of the 24,471 population being renters, there is a notable demand for rental properties. Yet, the affordability gap means that competition among landlords could be fierce, especially for those who are willing to accept Section 8 vouchers. Landlords who only accept cash payments may find themselves with fewer tenants willing to meet their asking price, particularly if they do not adjust their rates to align with the financial capabilities of local residents.
The takeaway for landlords considering their strategy is clear: accepting Section 8 vouchers can provide a stable and reliable source of income, given the higher FMR compared to the market rate. While the process of becoming a voucher-approved landlord involves additional paperwork and compliance, the benefits of securing tenants who can afford the rent through government assistance outweigh the potential drawbacks of dealing exclusively with cash-paying renters in an economically constrained environment.
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.