Location: Barranquitas-Aibonito, PR | Metro: San Juan-Guaynabo, 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)
A ZIP 00783 investment under the Section 8 program presents several challenges that landlords must consider. First, tenant turnover could be a significant issue due to the disparity between the market rent of $506 and the Fair Market Rent (FMR) of $590 for FY 2024. This gap suggests potential dissatisfaction among tenants who might find the market rent more appealing, leading to higher churn rates.
Vacancy exposure is another critical concern. The data does not provide a specific number of days on the market (DOM), which makes it difficult to predict how long a unit might remain vacant. This uncertainty can impact cash flow and profitability, especially if vacancies persist for extended periods.
The deferred maintenance exposure is also noteworthy. While there is no data available on the typical home value, the median income of $23,914 indicates that residents may have limited financial resources to cover unexpected repairs or maintenance costs. Landlords will need to ensure they have adequate reserves to handle these expenses without relying on tenant contributions.
However, these risks are somewhat mitigated by the high renter share of 24.9%. High renter density typically correlates with increased demand for rental properties, including those utilizing Section 8 vouchers. This demand can help stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
In conclusion, despite the challenges posed by potential tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 00783 provides a solid foundation for voucher demand. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.