Section 8 Fair Market Rent (FMR) for ZIP 00959 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$650
1 Bedroom	$670
2 Bedrooms	$780
3 Bedrooms	$1,020
4 Bedrooms	$1,230
5 Bedrooms	$1,427
6 Bedrooms	$1,598
7 Bedrooms	$1,726
8 Bedrooms	$1,812

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00959 (PR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 00959 in Puerto Rico is set by HUD for 2026 and ranges from $620 for a zero-bedroom unit to $1170 for a four-bedroom unit. However, without recent Zillow data, it is challenging to directly compare these figures to actual market rents. Typically, FMRs serve as a benchmark for rental assistance programs like Section 8, but they do not always reflect the true market conditions. For voucher holders, the primary constraint is that landlords must agree to participate in the Section 8 program, which can be limited due to administrative burdens and perceived risks. Additionally, voucher holders are restricted to units that do not exceed their assigned FMR, which could limit their housing options depending on the local rental market. #### Affordability & Renter Profile ZIP code 00959 has a population of 46,260, with 33.5% being renters. The median household income is $31,572, indicating a relatively low-income area. Given that the FMR for a two-bedroom unit is $740, which represents 28.1% of the median income, it suggests that renting is generally affordable for many residents. However, this also implies that there might be significant competition for affordable units among low-income households. The occupancy rate of 84.2% indicates that the market is moderately occupied, suggesting neither a surplus nor a severe shortage of rental properties. This balance could mean that while some units may be available, finding affordable ones could still be challenging. #### Investor Angle For investors focusing on Section 8 properties, the key consideration is whether the FMRs provide sufficient cash flow. Assuming a typical vacancy rate and maintenance costs, the cash flow would be positive if the landlord can secure a tenant through the Section 8 program. However, the investment grade would depend on factors such as property condition, location, and demand. Given the FMRs: - A zero-bedroom unit at $620 per month. - A one-bedroom unit at $640 per month. - A two-bedroom unit at $740 per month. - A three-bedroom unit at $970 per month. - A four-bedroom unit at $1170 per month. These rates suggest that investors could achieve positive cash flow, especially if they manage to keep operating costs low. However, the administrative complexity and potential delays in receiving payments from the government could affect the overall investment grade. In general, the FMRs align closely with the median income, making this ZIP code a viable option for Section 8-focused investors. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given that the FMR for a two-bedroom unit is $740, which is only 28.1% of the median income, these units are likely to be in high demand. Investing in properties that can be converted into two-bedroom units could provide a steady stream of tenants and maintain positive cash flow. 2. **Consider Location and Property Condition**: While the FMRs provide a baseline for rental income, the actual performance will depend on the property’s condition and its location within the ZIP code. Properties in prime locations or those that require minimal renovations are likely to attract more tenants and command higher rents within the FMR limits. 3. **Engage with Local Landlords**: Understanding the local landlord community and their attitudes toward Section 8 tenants can provide valuable insights. If many landlords are hesitant to participate in the program, this could indicate a need for education or incentives to increase participation rates. #### Bottom Line Based on the provided data, ZIP code 00959 presents a moderate opportunity for Section 8-focused investors. The FMRs are aligned with the median income, and the renter percentage is substantial, indicating a steady demand for affordable housing. However, the lack of recent Zillow data makes it difficult to assess the exact market conditions. Therefore, the recommendation is to **Hold** until more detailed market data becomes available. Investors should focus on properties that can be efficiently managed and located in areas with high demand for affordable housing.

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.