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)
In ZIP code 00982, located in Connecticut, there are notable risks associated with becoming a Section 8 landlord. Tenant turnover is a significant concern due to the market rent being lower than the Fair Market Rent (FMR). The market rent stands at $679, while the FMR is set at $720 for fiscal year 2024. This discrepancy suggests that tenants might be more inclined to move if they find a place offering higher benefits or lower out-of-pocket expenses, leading to higher turnover rates.
Vacancy exposure is another critical issue. With the days on market (DOM) data unavailable, it's challenging to predict how quickly a rental property can be filled once it becomes vacant. This uncertainty increases the risk of prolonged vacancies, which can significantly impact cash flow and profitability for landlords and small-portfolio investors.
The deferred maintenance exposure is also noteworthy. Given the median income of $28,906 and the lack of available data on typical home values, landlords must be prepared for potential wear and tear issues that may arise. Tenants with lower incomes might have fewer resources to maintain properties, leading to higher maintenance costs for landlords over time.
Despite these risks, the ZIP code 00982 has a high renter share of 40.6%. A large proportion of renters often translates into a robust demand for housing vouchers, which can stabilize occupancy rates and provide a consistent stream of rental income. This factor mitigates some of the risks associated with vacancy and tenant turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.