Location: San Juan-Guaynabo, PR | Metro: San Juan-Guaynabo, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $630 |
| 1 Bedroom | $650 |
| 2 Bedrooms | $760 |
| 3 Bedrooms | $990 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 00960 in Connecticut is limited due to incomplete data. However, using the available information, we can still provide some insights.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 00960 for fiscal year 2024 is set at $790 per month. To annualize this figure, we multiply it by 12, resulting in an annual rental income of $9,480 for a two-bedroom property under the Section 8 program.
Unfortunately, the market rent for ZIP 00960 is not available, making it impossible to directly compare the Section 8 rental rates with the prevailing market rates. Additionally, the median home value for the area is also not provided, which would be essential for calculating a precise cap rate.
The implied gross yield for a Section 8 property can be calculated if we had the median home value. For instance, if the median home value were hypothetically $200,000, the gross yield would be approximately 4.74% ($9,480 / $200,000). This is purely illustrative, as without the actual median home value, we cannot provide a definitive gross yield.
Given the lack of data on renter density and days on market (DOM), it's challenging to determine which scenario is more realistic. Typically, higher renter density and shorter DOM suggest a more favorable market for rental properties, including those participating in the Section 8 program. However, these factors are not quantified here, leaving us with an incomplete picture.
Investors should consider that the Section 8 program provides stable, government-backed rental income, which can be attractive even if the gross yield appears lower compared to market rents. The stability comes from the Housing Authority ensuring timely payments, which can be a significant advantage in areas where rent collection might otherwise be inconsistent.
In conclusion, while we cannot provide a comprehensive cap-rate analysis due to missing data, the annualized Section 8 rent of $9,480 offers a clear benchmark for potential rental income. Investors must weigh this against local market conditions, including the availability of market rent data and the overall housing demand in ZIP 00960.
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.