Location: San Juan-Guaynabo, PR | Metro: San Juan-Guaynabo, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $630 |
| 1 Bedroom | $640 |
| 2 Bedrooms | $750 |
| 3 Bedrooms | $970 |
| 4 Bedrooms | $1,180 |
| 5 Bedrooms | $1,369 |
| 6 Bedrooms | $1,533 |
| 7 Bedrooms | $1,656 |
| 8 Bedrooms | $1,739 |
U.S. Census Bureau data (2024)
ZIP 00951, located in the San Juan-Guaynabo area of Puerto Rico, represents an intriguing opportunity for inclusion in a Section 8 portfolio strategy. This ZIP code is best categorized as a cash-flow anchor. The rationale behind this classification lies in the significant spread between the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) and the prevailing market rents.
In fiscal year 2024, the HUD FMR for a two-bedroom apartment in ZIP 00951 is $690. However, the actual market rent for similar properties stands at $519. This discrepancy means that landlords participating in the Section 8 program can secure rental incomes that exceed local market rates, providing a stable and reliable cash flow. Unlike other markets where appreciation plays might be more appealing due to rising property values and short days on market (DOM), ZIP 00951 does not exhibit these characteristics, with N/A% price-cut share and N/A-day DOM indicating a lack of sufficient data to support such a strategy.
The median income figure of $22,669 suggests a strong demand for affordable housing, which aligns well with the Section 8 program's mission. Additionally, the high renter share of 81.3% indicates that a substantial portion of the population is already accustomed to renting, making this ZIP code particularly suitable for a rental-focused investment strategy. Given the economic conditions and the ongoing recovery efforts in Puerto Rico, the stability provided by the government-backed Section 8 program can act as a buffer against market volatility, ensuring consistent returns for investors.
To summarize, ZIP 00951 serves as a cash-flow anchor within a Section 8 portfolio strategy due to the favorable rent differential and the high demand for affordable rental units. Landlords can benefit from a steady income stream without the risk associated with volatile markets or uncertain economic growth.
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.