Location: Fajardo, PR | Metro: Fajardo, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $500 |
| 1 Bedroom | $500 |
| 2 Bedrooms | $640 |
| 3 Bedrooms | $780 |
| 4 Bedrooms | $840 |
| 5 Bedrooms | $974 |
| 6 Bedrooms | $1,091 |
| 7 Bedrooms | $1,178 |
| 8 Bedrooms | $1,237 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 00740, located in GU County, revolve around the Subsidized Average Fair Market Rent (SAFMR) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $650. However, the local market rent for a similar unit is slightly lower at $620 according to the Census ACS data.
A landlord participating in the Section 8 program receives a reimbursement based on the difference between the SAFMR and the tenant's portion of the rent. The tenant is required to pay 30% of their adjusted income towards rent, plus any utility allowances. Let’s break down the numbers:
If a tenant’s portion of the rent is calculated at 30% of their adjusted income, and assuming an average adjusted income that results in a tenant contribution of approximately $195, then the voucher would cover the remaining amount up to the SAFMR. This means the voucher would pay $650 minus the tenant's contribution of $195, equaling $455.
In addition to the base rental subsidy, there are utility allowances that can vary but are typically capped. For simplicity, let’s assume the utility allowance is $100 per month. Therefore, the total reimbursement a landlord would receive from the Section 8 program for a two-bedroom unit would be $455 for rent plus $100 for utilities, totaling $555 per month.
Given that the local market rent is $620, a landlord would have a reimbursement gap of $65, meaning they would need to make up the difference between the voucher payment ($555) and the market rent ($620). In other words, landlords in ZIP 00740 would face a shortfall of $65 per month if they were to charge the market rent for a two-bedroom apartment.
To summarize, the SAFMR for a two-bedroom apartment in ZIP 00740 is $650, while the market rent is $620. A landlord can expect to receive $555 in total reimbursement from the Section 8 program, leading to a $65 monthly gap compared to the local market rent.
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.