Section 8 Fair Market Rent (FMR) for ZIP 00791 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$510
1 Bedroom	$520
2 Bedrooms	$610
3 Bedrooms	$800
4 Bedrooms	$960
5 Bedrooms	$1,114
6 Bedrooms	$1,248
7 Bedrooms	$1,348
8 Bedrooms	$1,415

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00791 (Puerto Rico) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 00791 in Puerto Rico is set by HUD for 2026. The FMRs are as follows: - 0 Bedroom: $500 - 1 Bedroom: $520 - 2 Bedrooms: $600 - 3 Bedrooms: $780 - 4 Bedrooms: $930 Given that there is no recent Zillow data available, we cannot directly compare these FMRs to actual market rents. However, it is important to note that the FMRs are designed to reflect the average rent for a modest apartment in a given area. For voucher holders, the constraints include the fact that they can only use their vouchers for units that do not exceed the FMR. This means that if actual rents are higher than the FMRs, voucher holders will struggle to find suitable housing. #### Affordability & Renter Profile ZIP code 00791 has a population of 45,455, with 26.0% of households being renters. The occupancy rate is 72.5%, indicating a moderately occupied market. Given the median household income of $27,034, the affordability of housing is a significant concern. Specifically, the 2-bedroom FMR of $600 represents 26.6% of the median income, which is relatively affordable but still a substantial portion of the monthly budget for many residents. The renter profile likely includes individuals and families who are low-income earners, possibly relying on government assistance such as Section 8 vouchers. The limited availability of data makes it challenging to provide a detailed breakdown of the demographic characteristics of the renters, but the high percentage of renters relative to the overall population suggests a significant demand for rental properties. #### Investor Angle From an investor perspective, the key question is whether the FMRs are sufficient to generate positive cash flow. Without recent market data, we must rely on the FMRs as a proxy for rental rates. Assuming that the actual rents align closely with the FMRs, the following analysis can be made: - A 0-bedroom unit at $500 would need to have operating costs below $500 to be profitable. - A 1-bedroom unit at $520 would similarly need to cover all expenses with this amount. - A 2-bedroom unit at $600 would need to balance against the typical expenses associated with maintaining and managing a property. - A 3-bedroom unit at $780 and a 4-bedroom unit at $930 would offer slightly better margins, assuming the expenses remain consistent. The investment grade for this ZIP code would depend on the local real estate market conditions, including vacancy rates, property values, and maintenance costs. If the actual rents are indeed close to the FMRs, then the potential for cash flow would be limited, especially considering the lower median income levels. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the relatively low FMRs, investors should focus on smaller units such as 0BR, 1BR, and 2BR apartments. These units are more likely to be affordable for the majority of residents, including those using Section 8 vouchers. For example, a 2BR unit at $600 could be attractive to families earning around the median income, as it represents a manageable portion of their monthly budget. 2. **Consider Location-Specific Factors**: Since the FMRs are based on HUD guidelines, it is crucial to understand how these figures compare to the actual rental market. Investors should conduct thorough due diligence to assess the local rental dynamics, particularly focusing on neighborhoods where Section 8 tenants are most likely to reside. This might involve reaching out to local real estate agents or conducting surveys to gather more precise rental price data. 3. **Optimize Property Management Costs**: To ensure profitability, investors must carefully manage their expenses. This includes keeping maintenance costs low, negotiating favorable terms with contractors, and ensuring efficient operations. For instance, a 3BR unit at $780 would need to have operating costs well below this figure to be financially viable. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 00791 is **Hold**. While the FMRs are relatively low, the potential for cash flow is constrained by the high percentage of renters and the moderate occupancy rate. The lack of recent market data also introduces uncertainty into the investment decision-making process. Therefore, investors should proceed with caution and consider holding existing investments until more comprehensive data becomes available to make informed decisions about new acquisitions.

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.