Section 8 Fair Market Rent (FMR) for ZIP 00987 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$690
1 Bedroom	$700
2 Bedrooms	$820
3 Bedrooms	$1,070
4 Bedrooms	$1,300
5 Bedrooms	$1,508
6 Bedrooms	$1,689
7 Bedrooms	$1,824
8 Bedrooms	$1,915

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 00987 (, PR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 00987, as of 2026, is set at the following rates: - 0BR: $670 - 1BR: $690 - 2BR: $800 (which represents 22.2% of the median household income) - 3BR: $1050 - 4BR: $1260 To understand how these FMRs compare to actual rents, we would typically look at recent Zillow data. However, since there is no recent Zillow data available for ZIP 00987, we must rely on the FMR figures and other contextual information. The FMRs serve as a benchmark for what the government considers affordable rent based on local market conditions. Given that 25.2% of households are renters, it suggests a significant portion of the population relies on rental housing. The occupancy rate of 88.2% indicates that most units are occupied, which could imply a relatively tight market. If actual rents are close to or higher than the FMRs, voucher holders will face constraints in finding affordable housing. For instance, a 2BR unit priced at $800 would consume nearly a quarter of the median household income, leaving little room for other expenses. #### Affordability & Renter Profile ZIP 00987 has a median household income of $43,159. With 25.2% of households being renters, the typical renter likely falls into the lower-income bracket, given the high percentage of their income required for housing. The affordability of housing is critical for these residents, especially those who rely on Section 8 vouchers. The 2BR unit's FMR of $800 equates to 22.2% of the median household income, indicating that housing costs can be a substantial burden. This suggests that the market is tight, and renters may struggle to find units within their budget. The lack of recent Zillow data makes it challenging to determine if there is an oversupply or undersupply of rental units, but the occupancy rate supports the idea that the market is relatively stable and not oversupplied. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMR levels. To assess this, we need to consider the average rental property expenses, including mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate where total expenses (excluding mortgage) amount to 50% of the rent, a 2BR unit renting at $800 would have $400 left for mortgage payments and profit. Given the median household income and the FMR constraints, it is plausible that rents are near or slightly above these levels. If actual rents are higher, the cash flow potential improves. The investment grade of a property in ZIP 00987 would depend on the specific property's condition, location, and demand. However, given the relatively high occupancy rate and the significant number of renters, there is a strong likelihood that rental properties can achieve positive cash flow, especially if they are well-maintained and located in desirable areas. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the FMRs, smaller units such as 0BR and 1BR are more likely to be affordable for voucher holders. A 0BR unit renting at $670 or a 1BR unit renting at $690 would be within the budget for many low-income residents. Investing in smaller units could provide a steady stream of tenants and minimize vacancy rates. 2. **Target Areas with Lower Property Taxes**: Since property taxes can significantly impact cash flow, targeting areas with lower tax rates could improve profitability. For example, if a 2BR unit is rented at $800, reducing property taxes could allow for higher net cash flow. Investors should research specific neighborhoods within ZIP 00987 to identify areas with lower tax burdens. 3. **Maintain Properties to Attract Tenants**: In a tight market like ZIP 00987, maintaining properties in good condition is crucial. Well-maintained units are more likely to attract tenants and command higher rents, even if they are slightly above the FMR. For instance, a 3BR unit renting at $1050 might be able to fetch $1100-$1150 if it is in excellent condition, thereby improving cash flow. #### Bottom Line For Section 8-focused investors, ZIP 00987 presents a **Buy** recommendation. The high occupancy rate and significant number of renters suggest a stable demand for rental units. Smaller units, particularly 0BR and 1BR, are more likely to be affordable for voucher holders, providing a reliable tenant base. Additionally, well-maintained properties can potentially command rents slightly above the FMR, enhancing cash flow and investment returns. However, investors should conduct thorough due diligence on specific property tax rates and maintenance costs to ensure that their investments remain profitable. The market dynamics indicate a favorable environment for rental investments, especially those aligned with Section 8 voucher programs.

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.