Section 8 Fair Market Rent (FMR) for ZIP 00795 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$480
1 Bedroom	$500
2 Bedrooms	$540
3 Bedrooms	$750
4 Bedrooms	$840
5 Bedrooms	$974
6 Bedrooms	$1,091
7 Bedrooms	$1,178
8 Bedrooms	$1,237

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00795 (PR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 00795 is set by HUD for 2026. The FMRs are as follows: - 0BR: $470 - 1BR: $490 - 2BR: $540 (which is 26.3% of the median household income) - 3BR: $760 - 4BR: $830 Given that there is no recent Zillow data available, it is challenging to directly compare these FMRs to actual market rents. However, based on historical trends and typical rent levels in Puerto Rico, it is likely that the actual market rents are higher than the FMRs. This means that tenants using Section 8 vouchers might face challenges finding properties within their budget, especially for larger units. The constraints for voucher holders include the limited availability of properties that accept Section 8 vouchers and the potential difficulty in finding units where the landlord is willing to accept the lower rent stipulated by the FMR. For example, a 2BR unit priced at $540 would be significantly below what many landlords might charge in the open market, which could limit the number of available options for voucher holders. #### Affordability & Renter Profile ZIP code 00795 has a population of 43,367, with 22.3% of residents being renters. The median household income is $24,602, indicating a relatively low-income area. Given that the FMR for a 2BR unit is $540, which is only 26.3% of the median income, it suggests that renting is generally affordable for most residents. However, the occupancy rate of 83.1% indicates that the housing market is moderately tight, with a slight shortage of available units. The typical renter profile in this ZIP code would likely be low-income families or individuals who are either using Section 8 vouchers or paying out-of-pocket but still within the affordability range. The high proportion of owner-occupied homes (77.7%) also suggests that homeownership is a significant factor in this community, possibly due to the lower cost of living and the availability of affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 00795 offers some interesting dynamics. If we assume that the actual market rents are higher than the FMRs, then investing in properties that can be rented at the FMR levels would likely result in a cash-flow positive scenario. For instance, a 2BR unit at $540 per month would be well below the typical market rent, providing a margin for profit if the property can be managed efficiently. However, the investment grade would depend on several factors, including the demand for Section 8 properties, the likelihood of finding tenants, and the overall stability of the rental market. Given the tight occupancy rate and the relatively low median income, there is a risk that the demand for Section 8 properties might be high, leading to competition among landlords. Additionally, the lack of recent Zillow data makes it difficult to assess the current market conditions accurately. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the FMRs, smaller units (0BR and 1BR) are more likely to be rented at the stipulated rates without much difficulty. A 1BR unit at $490 per month is particularly attractive since it is close to the FMR but still manageable for many low-income households. Investors should consider acquiring or developing smaller units to cater to this demand. 2. **Consider Multi-Family Properties**: Multi-family properties can offer economies of scale and potentially higher occupancy rates. A 2BR unit at $540 per month is a good starting point, but investors should also look into 3BR and 4BR units, which have higher FMRs ($760 and $830 respectively). These larger units might be more challenging to fill, but they can provide better returns if managed effectively. 3. **Evaluate Property Management Costs**: Since the FMRs are relatively low, it is crucial to evaluate the costs associated with property management, including maintenance, utilities, and administrative expenses. Ensuring that these costs do not exceed the rental income is essential for maintaining profitability. For example, a 2BR unit at $540 per month must cover all expenses to remain cash-flow positive. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 00795 is to **Buy**. The low FMRs relative to the median income suggest that there is a strong demand for affordable housing. Investing in smaller units or multi-family properties can provide a stable source of income, especially if the properties are well-managed and located in desirable areas. However, investors should proceed with caution, given the tight occupancy rate and the potential challenges in finding tenants willing to pay the FMR. Careful evaluation of property management costs and strategies to attract and retain Section 8 tenants will be critical for success in this market.

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.