Section 8 Fair Market Rent (FMR) for ZIP 00924 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$570
1 Bedroom	$580
2 Bedrooms	$680
3 Bedrooms	$890
4 Bedrooms	$1,080
5 Bedrooms	$1,253
6 Bedrooms	$1,403
7 Bedrooms	$1,515
8 Bedrooms	$1,591

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The ZIP code 00924 is located in Puerto Rico and has a population of 49,922. The median household income in this area is relatively low at $25,724, which significantly impacts the housing market dynamics. Given that 49.2% of the residents are renters, understanding the rental market and the role of Section 8 vouchers is crucial for both tenants and investors. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for 2026 in ZIP 00924 is as follows: - 0BR: $540 - 1BR: $550 - 2BR: $640 (which is 29.9% of the median income) - 3BR: $840 - 4BR: $1010 To analyze how these figures compare to actual rents, we would typically use Zillow data. However, since there is no recent Zillow data available, we must rely on the FMR values and other contextual factors. Given the low median income, it is likely that actual rents are close to or below the FMR levels. For instance, a 2BR unit at $640 represents only 29.9% of the median income, suggesting that many residents might find it challenging to afford higher rents without assistance. This implies that landlords who want to attract Section 8 voucher holders should keep their rent prices near or below the FMR levels to ensure they can secure tenants. ### Affordability & Renter Profile With a median income of $25,724, the majority of renters in ZIP 00924 are likely to be low-income individuals or families. The high percentage of renters (49.2%) indicates a significant demand for affordable housing options. The occupancy rate of 81.1% suggests that while there is demand, the market is not oversupplied; it is relatively balanced but could lean towards being slightly tight due to the high renter percentage. Low-income households often rely on government assistance programs like Section 8 to manage their housing costs. The fact that a 2BR unit consumes nearly 30% of the median income highlights the financial strain on these households. Therefore, properties priced at or near the FMR levels will likely have a steady stream of interested tenants. ### Investor Angle From an investor perspective, the key question is whether renting properties at the FMR levels can generate positive cash flow. To determine this, we need to consider property management costs, maintenance expenses, and potential vacancy rates. Assuming a conservative estimate of 10% for combined management and maintenance costs, the net effective rent would be: - 0BR: $540 - 10% = $486 - 1BR: $550 - 10% = $495 - 2BR: $640 - 10% = $576 - 3BR: $840 - 10% = $756 - 4BR: $1010 - 10% = $909 These figures suggest that even after accounting for typical operating costs, the rents remain relatively low. However, the low median income also means that the risk of default or late payments might be higher compared to areas with higher incomes. Thus, the investment grade in ZIP 00924 would be considered moderate to low, given the economic conditions and the reliance on government subsidies. ### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the low median income, smaller units (0BR and 1BR) are more likely to be affordable for most residents. A 1BR unit at $550 is particularly attractive as it is just above the FMR for a 0BR unit, making it accessible to those with limited budgets. 2. **Rent Pricing Strategy**: Landlords should price their units at or slightly below the FMR levels to maximize occupancy. For example, pricing a 2BR unit at $600 instead of $640 could make it more attractive to voucher holders and reduce the likelihood of vacancies. 3. **Government Programs**: Engage with local government programs to understand any additional subsidies or incentives that might be available for landlords who accept Section 8 vouchers. This can help offset some of the risks associated with lower-income tenants. ### Bottom Line For Section 8-focused investors, ZIP 00924 presents a mixed picture. While the demand for affordable housing is strong, the low median income and high percentage of renters suggest a challenging environment. The recommendation for investors is to **Hold**. This means maintaining existing investments or carefully selecting properties that align with the FMR guidelines and have a solid track record of occupancy. Investors should focus on smaller units and consider engaging with local government programs to mitigate risks. In summary, the market in ZIP 00924 is characterized by a high demand for affordable housing, with Section 8 vouchers playing a critical role in enabling residents to secure living spaces. However, the economic conditions necessitate cautious investment strategies to ensure sustainability and profitability.

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.