Location: San Juan-Guaynabo, PR | Metro: San Juan-Guaynabo, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $510 |
| 1 Bedroom | $520 |
| 2 Bedrooms | $600 |
| 3 Bedrooms | $790 |
| 4 Bedrooms | $950 |
| 5 Bedrooms | $1,102 |
| 6 Bedrooms | $1,234 |
| 7 Bedrooms | $1,333 |
| 8 Bedrooms | $1,400 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 00718 in Guaynabo, Puerto Rico, might have several concerns regarding the feasibility of investing in rental properties through the Section 8 program. Let's address these concerns with the available data.
The Fair Market Rent (FMR) for ZIP 00718 is set at $570 for fiscal year 2024. However, the lack of specific data on average home prices makes it difficult to conclusively determine if this amount will cover the mortgage. For a precise analysis, one would need the median home value or average mortgage costs in the area.
The rental demand in ZIP 00718 is indicated by the 27.0% share of renters among all households. While this percentage suggests that a quarter of the population is actively seeking rental housing, it does not provide insight into the total number of potential tenants or vacancy rates. To accurately gauge demand, additional metrics such as the number of units rented and the occupancy rate would be necessary.
The market rent in ZIP 00718 is reported to be $528, slightly below the FMR. This indicates that vouchers could potentially cover the majority of market rents, but not all properties will fall under this threshold. Landlords should consider the possibility of some units being too expensive for voucher holders, which could affect their ability to fill vacancies.
In conclusion, while the FMR of $570 provides a benchmark for what the government will pay, the absence of data on home prices means that covering a mortgage cannot be guaranteed. The 27.0% rental demand suggests a steady stream of potential tenants but lacks detail on the total number of renters and vacancy rates. Lastly, the gap between market rents ($528) and FMRs implies that vouchers can generally keep pace, though some higher-priced units may struggle to find tenants. These points highlight the importance of thorough local market research before making investment decisions in ZIP 00718.
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.