Section 8 Fair Market Rent (FMR) for ZIP 00732 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 00732 (Ponce County, PR) are straightforward when you understand the Federal Housing Administration's Monthly Rent (SAFMR) and how it interacts with local market conditions. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $550. This figure represents the maximum amount that a landlord can receive through the Section 8 program for renting out a two-bedroom unit.

The SAFMR is designed to reflect the average fair market rent for the area, but it does not necessarily align with the actual rental rates that landlords might charge in their local market. In ZIP 00732, there is currently no data available on the local market rent, which makes it difficult to compare the SAFMR against prevailing market rates. However, understanding the SAFMR is crucial for landlords participating in the Section 8 program.

A Section 8 voucher pays a significant portion of the rent, but not all of it. Typically, the tenant is responsible for paying approximately 30% of their adjusted income towards the rent. The remainder is covered by the voucher up to the SAFMR limit. If the tenant's share plus the utility allowance exceeds $550, the landlord will still only receive $550. Conversely, if the total is less than $550, the landlord receives the full amount up to the limit.

To illustrate, let's assume a tenant has an adjusted income that requires them to pay $165 towards the rent (this is an example; actual amounts vary based on individual income). The utility allowance, which covers electricity, gas, water, and sewage, is typically around $30-$50 per month, depending on the size of the unit and local utility costs. Therefore, if we use a utility allowance of $40, the total reimbursement would be $205 ($165 tenant portion + $40 utilities).

In this scenario, the landlord would receive $550 from the government, covering the tenant's share and the utility allowance. This leaves a reimbursement gap or surplus depending on the actual market rent. Since the local market rent is not available, we can't calculate the exact gap or surplus, but it's clear that the landlord is guaranteed a minimum payment of $550 per month, regardless of the tenant's contribution.

The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 00732 is unknown due to the lack of local market rent data. However, landlords should expect that the total rent received through the Section 8 program will not exceed $550 per month, even if the market rent is higher. This can lead to a surplus if the market rent is lower than $550, or a gap if the market rent is higher. Landlords must decide whether the guaranteed minimum payment outweighs the potential for higher market rents.

Data Sources: FMR data from HUD (2027).

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.