Section 8 Fair Market Rent (FMR) for ZIP 00745 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$550
1 Bedroom	$560
2 Bedrooms	$650
3 Bedrooms	$850
4 Bedrooms	$1,030
5 Bedrooms	$1,195
6 Bedrooms	$1,338
7 Bedrooms	$1,445
8 Bedrooms	$1,517

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00745 (, PR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 00745 is set by HUD for 2026 and ranges from $520 for a zero-bedroom unit to $980 for a four-bedroom unit. However, without recent Zillow data, it's challenging to directly compare these figures to actual market rents. Typically, the FMR is designed to reflect the average rent paid by low-income families in the area, but actual rents can vary widely based on location, amenities, and condition. For voucher holders, the primary constraint is that landlords must accept the voucher amount, which may be lower than what they could charge other tenants. This can limit their options to units that are either priced below the market rate or where landlords are willing to participate in the Section 8 program. #### Affordability & Renter Profile ZIP code 00745 has a population of 46,739, with 28.8% of residents being renters. The median household income is $29,268, which means that many residents are likely to qualify for Section 8 vouchers. A 2BR unit, which costs $620 per month, represents 25.4% of the median income, indicating that it is relatively affordable for the average resident. However, the occupancy rate of 73.6% suggests that there is some vacancy in the rental market, which could indicate either a slight oversupply or a mismatch between available units and tenant needs. Given the high percentage of renters who might need assistance, the demand for affordable housing is likely strong. #### Investor Angle From an investor perspective, the cash flow potential at FMR levels needs careful consideration. The FMR for a 2BR unit is $620, which is 25.4% of the median income. If we assume that the average rent for a 2BR unit in the market is slightly higher, say around $700, then the difference between market rent and FMR could impact the cash flow positively. However, the occupancy rate of 73.6% implies that there is a risk of vacancy, especially if the property is not well-maintained or located in a less desirable part of the ZIP code. Investment grade for properties in ZIP 00745 would depend on factors such as the condition of the property, its location, and the willingness of the landlord to comply with Section 8 requirements. Properties that are well-located and maintained are likely to have better investment grades due to higher demand and lower vacancy risks. #### Specific Actionable Insights 1. **Focus on Well-Maintained Units**: Given the occupancy rate, investors should focus on acquiring and maintaining properties in good condition. A well-maintained 2BR unit at $620 per month could attract tenants who are willing to pay slightly above FMR, potentially increasing cash flow. 2. **Location Matters**: Properties in prime locations within ZIP 00745 are likely to have higher demand and lower vacancy rates. Investors should prioritize areas that are closer to amenities, schools, and employment centers. 3. **Compliance and Relationship Building**: Landlords who are willing to comply with Section 8 requirements and build relationships with local housing authorities can benefit from a steady stream of tenants. This could involve offering competitive amenities or services that make the property more attractive to voucher holders. #### Bottom Line Given the data, ZIP code 00745 presents a mixed picture for Section 8-focused investors. While the demand for affordable housing is strong, the occupancy rate indicates some level of vacancy risk. Therefore, the recommendation is to **Hold** on existing investments and **Skip** new acquisitions unless the properties are in prime locations and well-maintained. Investors should carefully evaluate the potential for cash flow improvements through strategic management and compliance with Section 8 guidelines.

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.