Section 8 Fair Market Rent (FMR) for ZIP 00736 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$450
1 Bedroom	$460
2 Bedrooms	$570
3 Bedrooms	$790
4 Bedrooms	$950
5 Bedrooms	$1,102
6 Bedrooms	$1,234
7 Bedrooms	$1,333
8 Bedrooms	$1,400

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00736 (Puerto Rico) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 00736 are set by HUD for 2026 and range from $450 for a zero-bedroom unit to $890 for a four-bedroom unit. However, without recent Zillow data, it is challenging to directly compare these figures to actual rental rates in the area. Typically, FMRs are established based on average market rents, but they can sometimes lag behind actual market conditions. Given that Puerto Rico has unique economic challenges and recovery efforts post-natural disasters, actual rents might be lower than FMRs due to high vacancy rates and limited demand. For voucher holders, the constraints include finding units that accept vouchers and do not exceed the FMR limits. Since the FMR for a two-bedroom unit is $530, which represents 21.2% of the median household income ($29,971), there is a significant affordability gap for low-income renters. This suggests that voucher holders may struggle to find suitable housing unless landlords are willing to accept the lower rent levels set by HUD. #### Affordability & Renter Profile ZIP code 00736 has a population of 45,306, with 36.9% being renters. The median household income is $29,971, indicating a predominantly low-income community. Given the occupancy rate of 83.2%, the market appears to be moderately tight, but not overly so. There is still some room for new rentals to enter the market without causing significant oversupply. The affordability of housing is a critical issue in this ZIP code. With the FMR for a two-bedroom unit at $530, which is only 21.2% of the median income, many residents may find it difficult to afford even the most basic housing without assistance. This makes the availability of Section 8 vouchers particularly important for maintaining a stable rental market. #### Investor Angle From an investor perspective, the ZIP code 00736 presents a mixed picture. The FMRs provide a baseline for rental pricing, but the actual cash flow potential will depend on whether these rents can be achieved in the market. If actual rents are below FMRs, then properties rented through Section 8 could still generate positive cash flow, albeit at a lower rate than FMRs suggest. Given the median household income and the percentage of renters, the investment grade for this ZIP code would likely be rated as moderate to low. The primary risk factors include the potential for lower-than-FMR rents and the economic challenges faced by Puerto Rico. However, the stability provided by government-backed Section 8 vouchers could mitigate some of these risks. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the affordability issues, smaller units such as zero-bedroom and one-bedroom apartments are likely to be more in demand. The FMR for these units is $450, which is more manageable for low-income households. Investors should consider developing or acquiring properties with a higher proportion of these smaller units to maximize occupancy and cash flow. 2. **Negotiate Lower Rents**: While FMRs are set at $450 for zero-bedroom and one-bedroom units, and $530 for two-bedroom units, actual rents may be lower due to the economic situation in Puerto Rico. Investors should be prepared to negotiate rents below FMRs to ensure full occupancy. For example, setting the rent for a two-bedroom unit at $450 instead of $530 could make the property more attractive to tenants and improve cash flow. 3. **Government Assistance Programs**: Given the high percentage of renters who rely on government assistance, investors should familiarize themselves with local programs and incentives. These could include tax breaks for landlords who participate in Section 8, or other subsidies that help offset the lower rent levels. Engaging with local housing authorities and understanding the regulatory landscape can provide additional support for maintaining profitability. #### Bottom Line For Section 8-focused investors, ZIP code 00736 presents a moderate opportunity. The market is moderately tight, and there is a significant need for affordable housing. However, the economic conditions and potential for lower-than-FMR rents mean that investors should proceed cautiously. A recommendation of "Hold" is appropriate, as there is potential for positive cash flow but also significant risks that require careful management. Investors should focus on smaller units and be prepared to negotiate rents to ensure full occupancy and stable returns.

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.