Location: San Juan-Guaynabo, PR | Metro: San Juan-Guaynabo, PR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $550 |
| 1 Bedroom | $570 |
| 2 Bedrooms | $660 |
| 3 Bedrooms | $860 |
| 4 Bedrooms | $1,040 |
| 5 Bedrooms | $1,206 |
| 6 Bedrooms | $1,351 |
| 7 Bedrooms | $1,459 |
| 8 Bedrooms | $1,532 |
U.S. Census Bureau data (2024)
The ZIP code 00962 corresponds to the city of Manatí, Puerto Rico. It is not located in Connecticut as initially mentioned; rather, it is situated in a region known for its agricultural and industrial activities. With a population of 18,947, Manatí has a significant rental market, with 45.4% of residents being renters. The median household income in the area is notably low at $21,288, reflecting the economic challenges faced by many residents. This context is crucial when considering the potential for Section 8 investment opportunities.
The Federal Market Rent (FMR) for ZIP 00962 for fiscal year 2024 is set at $620. In contrast, the average market rent based on Census ACS data is $550. This difference between the FMR and the actual market rent can be seen as an opportunity for landlords and small-portfolio investors. The higher FMR rate means that landlords participating in the Section 8 program can receive a subsidy that exceeds the typical market rent, providing a financial buffer against the lower incomes of tenants in the area.
Given these conditions, ZIP 00962 may be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the guaranteed rental income through the Section 8 program can provide a steady stream of cash flow with minimal tenant turnover risk. However, for value-add buyers looking to improve properties and potentially increase rents, there is room to enhance property values and services while still remaining competitive within the subsidized housing market.
To summarize, Manatí's demographic and economic profile presents a unique opportunity for Section 8 investments. The disparity between the FMR and market rent offers a financial advantage for landlords, making the area attractive for both passive and active real estate strategies. Investors should carefully consider the local market dynamics and the potential for property improvements to maximize their returns.
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.