Location: San Juan-Guaynabo, PR | Metro: San Juan-Guaynabo, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $660 |
| 2 Bedrooms | $770 |
| 3 Bedrooms | $1,000 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
U.S. Census Bureau data (2024)
ZIP code 00957 corresponds to the neighborhood of Ponce, Puerto Rico. It is important to note that despite being referred to as a ZIP code associated with Connecticut earlier, it is actually located in Puerto Rico. Ponce is a vibrant city with a population of 40,194 residents. The rental market here is notable, with 28.8% of the population renting their homes. This indicates a significant portion of the community relies on rented accommodation, which can be beneficial for landlords and investors looking to tap into a steady demand for rental properties.
The median household income in Ponce is $29,913. While this figure is lower compared to many mainland U.S. locations, it aligns well with the local economic conditions and should be considered when evaluating the potential tenant base. The median home value is not available, suggesting that either there is insufficient data or the market dynamics are such that home values fluctuate widely or are less commonly reported.
Moving to the rent economics, the Fair Market Rent (FMR) for ZIP 00957 as of fiscal year 2024 is set at $730. This is slightly above the market rent of $722, according to the Census American Community Survey. The close alignment between FMR and market rent suggests that the housing assistance provided through the Section 8 program is effectively meeting the needs of low-income tenants in Ponce. For landlords, this means that accepting Section 8 vouchers could provide a stable source of income that closely mirrors the market rates.
In terms of investment strategy, Ponce appears to offer opportunities for both hands-off voucher operators and hands-on value-add buyers. The hands-off operator can benefit from the stability provided by the Section 8 program, ensuring consistent rental income without the need for extensive property management. On the other hand, the hands-on value-add buyer can explore ways to improve property values and rents, given the slightly higher FMR compared to the current market rent. This could involve renovations or strategic location choices within Ponce to capitalize on the local rental demand.
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.