Section 8 Fair Market Rent (FMR) for ZIP 00729 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$550
1 Bedroom	$570
2 Bedrooms	$660
3 Bedrooms	$860
4 Bedrooms	$1,040
5 Bedrooms	$1,206
6 Bedrooms	$1,351
7 Bedrooms	$1,459
8 Bedrooms	$1,532

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00729 (, PR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 00729 in Puerto Rico for 2026 are as follows: - 0BR: $530 - 1BR: $540 - 2BR: $630 (24.2% of median income) - 3BR: $820 - 4BR: $990 Given that there is no recent Zillow data available, we cannot directly compare these FMRs to actual rents. However, it is important to note that the FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent, which means any rental property priced above these levels would be out of reach for voucher holders. This constraint significantly limits the potential tenant pool for properties priced higher than the FMRs. #### Affordability & Renter Profile ZIP code 00729 has a population of 47,067, with 25.5% of residents being renters. The median household income is $31,239, which indicates a relatively low-income area. Given that the 2BR FMR represents 24.2% of the median income, it suggests that the housing costs are generally affordable for the local population. However, the high occupancy rate of 85.0% implies that there is a strong demand for housing, potentially making it a tight market for renters. #### Investor Angle To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. These include mortgage payments, property taxes, insurance, maintenance, and other operating costs. Without specific Zillow data, we can only hypothesize based on the FMRs. For example, let’s consider a 2BR unit with an FMR of $630. If the total monthly expenses (including mortgage, taxes, insurance, etc.) are less than $630, then the property would be cash-flow positive. However, given the lack of recent rental price data, we cannot make a definitive statement about the cash flow. In terms of investment grade, the tight market and high occupancy rate suggest that there is a solid demand for rental units. However, the low median income and the fact that 24.2% of it goes towards 2BR FMR indicate that the market may be sensitive to economic fluctuations. Therefore, while there is demand, the investment grade would likely be moderate due to the risk factors associated with low-income areas. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Since the FMRs represent the maximum allowable rent for Section 8 voucher holders, investing in properties that are priced slightly below these levels could attract more tenants. For instance, a 2BR unit priced at $600 would still be attractive to voucher holders and provide a margin for profit. 2. **Consider Property Size and Demand**: Given the high occupancy rate, smaller units (0BR and 1BR) might have a quicker turnaround time for rentals. These units are priced at $530 and $540 respectively, which are lower than the 2BR FMR. Investors should consider the balance between the size of the unit and the potential for steady cash flow. 3. **Evaluate Economic Stability**: ZIP code 00729 has a median household income of $31,239, which is relatively low. Investors should carefully assess the economic stability of the area and consider diversifying their investments to mitigate risks associated with economic downturns. #### Bottom Line Based on the provided data, ZIP code 00729 presents a moderately attractive market for Section 8-focused investors. The high occupancy rate and significant percentage of renters indicate a strong demand for rental units. However, the low median income and the sensitivity to economic conditions mean that the investment grade is moderate. **Recommendation**: Hold. While there is a good demand for rental units, the economic conditions and the lack of recent rental price data make it prudent to maintain a cautious approach. Investors should focus on units priced slightly below the FMR to ensure steady cash flow and consider diversification to manage risk.

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.