Location: San Juan-Guaynabo, PR | Metro: Fajardo, 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)
The ZIP code 00735, located in the San Juan-Guaynabo area of Puerto Rico, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the spread between the Fair Market Rent (FMR) and the market rent for the area.
In fiscal year 2024, the HUD designated FMR for ZIP 00735 is set at $560. However, the current market rent stands at $538. This indicates that landlords who participate in the Section 8 program can expect to receive a higher rent payment than what the market would typically offer. By anchoring a portion of their portfolio in ZIP 00735, landlords can ensure steady and reliable cash flow, protected by the government subsidy, which covers the gap between the tenant's contribution and the FMR.
While appreciation plays and diversifiers are also important components of a real estate investment strategy, the data for ZIP 00735 does not support these classifications. The price-cut share and days on market (DOM) figures are not available, making it difficult to assess the potential for property appreciation. Similarly, while the median income of $25,243 and a renter share of 24.4% provide insight into the local economy and housing demand, they do not suggest that this area offers significant diversification benefits beyond its role as a cash-flow anchor.
To summarize, ZIP 00735 is most effectively utilized as a cash-flow anchor in a Section 8 portfolio strategy due to the favorable spread between the HUD FMR and the current market rent. Landlords should consider this ZIP code for properties where they aim to stabilize their income streams with government-backed rental payments.
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.