Puerto Rico, while not technically a state, is still a part of the United States. It is, in fact, a territory, which means residents are U.S. citizens but do not have voting representation in Congress and cannot vote in presidential elections. Puerto Rico is well known for its tropical climate, with temperatures hovering around 80 degrees Fahrenheit year-round.
As of 2025, Puerto Rico is home to roughly 3.2 million people, a figure that has declined over the past decade as residents move to the mainland. By area the territory is quite small, so it remains one of the most densely populated jurisdictions under the U.S. flag. The economy produces on the order of $126 billion a year (2024), anchored by manufacturing — which makes up close to half of output, led by pharmaceuticals and medical devices — along with tourism and financial services.
Places to Live
Home values in Puerto Rico have risen sharply over the past several years, though the island generally remains more affordable than much of the mainland. Reported median prices vary widely by source and market segment, so buyers should treat any single figure with caution and look at current local listings. Most of Puerto Rico's population lives in and around its cities, and a large share is concentrated in the greater San Juan metropolitan area. Read on for more information on popular places to live in PR.
San Juan
Population: about 342,000 (2020 Census)
San Juan is Puerto Rico's capital, largest city, and economic hub. Counting the entire metro area, greater San Juan is home to a substantial share of the territory's residents. The city's economy is built around services, government, finance, manufacturing, and a major tourism sector centered on Old San Juan and the cruise port.
Bayamon
Population: about 185,000 (2020 Census)
Bayamon is one of Puerto Rico's largest municipalities and is part of the greater San Juan metropolitan area. Largely suburban and industrial rather than agricultural, it offers a mix of residential neighborhoods, manufacturing and commercial activity, and extensive shopping options.
Carolina
Carolina, also within the San Juan metro area, is another of the territory's most populous municipalities. It is home to Luis Munoz Marin International Airport — Puerto Rico's main gateway — along with hotels and beach communities along the north coast.
Financial Institutions in Puerto Rico
Banking in Puerto Rico works a little differently than on the mainland, so here are a few tips for current residents and anyone considering a move. You generally will not find branches of most large mainland banks on the island; instead, the market is led by Puerto Rico-based institutions. Deposits at these banks carry FDIC insurance, which is important to keep in mind. Below are a few of the banking options operating in Puerto Rico today:
Banks:
- Banco Popular de Puerto Rico
- FirstBank Puerto Rico (First BanCorp)
- Oriental Bank (OFG Bancorp)
- Citibank (limited Puerto Rico presence)
Credit Unions:
Puerto Rico also has a strong cooperative banking culture, with credit unions known locally as cooperativas. A couple of the larger federally chartered options include:
- Caribe Federal Credit Union
- VAPR Federal Credit Union
Now that you've seen a few of your options, it's a good time to compare interest rates for the financial products you're interested in. That's simple when you use RateZip.com's free financial search engine, which lets you compare offers side by side. Get started now!
PR Mortgage Rates
Though it is not officially a state, buying a home in Puerto Rico is very similar to buying in the continental U.S., Alaska, and Hawaii. You will find conventional loans backed by Fannie Mae and Freddie Mac, FHA home loans, and VA mortgages. First-time and lower-income buyers may also qualify for assistance and homebuyer-education programs through the Puerto Rico Housing Finance Authority (PRHFA), the territory's housing finance agency.
Mortgage rates move constantly, so rather than quoting a number, we encourage you to compare current offers from multiple lenders before you commit. Use RateZip to review up-to-date rates and terms for the loan type that fits your situation.