Section 8 Fair Market Rent (FMR) for ZIP 01525 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 01525 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1650. This figure represents the maximum amount that the Housing Choice Voucher program will pay toward rent for a unit of this size.

To understand how this works for landlords, it's important to break down the components. Tenants participating in the Section 8 program typically pay 30% of their adjusted income toward rent. Any amount above the SAFMR must be paid directly by the tenant to the landlord, which can sometimes lead to financial strain on the tenant.

The voucher payment covers the difference between the tenant's contribution and the SAFMR. For instance, if a tenant's share is $500, the voucher would cover the remaining $1150, making the total rental payment $1650. Utility allowances are additional funds provided to help cover the cost of utilities, but these do not increase the overall SAFMR limit. Instead, they are designed to ensure that tenants can afford basic utilities without compromising the rent payment.

In ZIP 01525, the local market rent data is currently unavailable, which means there's no direct comparison to typical market rates. However, the SAFMR of $1650 stands as the benchmark for subsidized rental payments in this area.

Landlords should be aware that the reimbursement from the Section 8 program is fixed at the SAFMR level, regardless of the actual market conditions. If market rents exceed the SAFMR, landlords will face a reimbursement gap, where they receive less than the market rate. Conversely, if market rents are below the SAFMR, landlords might see a surplus, receiving more than what they would typically charge.

In ZIP 01525, given the lack of local market rent data, it's unclear whether landlords will experience a gap or surplus. However, the reimbursement mechanism ensures that the total rent received by the landlord will not exceed $1650 for a two-bedroom unit, unless the tenant pays extra out-of-pocket for amounts above this limit.

Ultimately, the key takeaway for landlords is that the SAFMR of $1650 is the ceiling for subsidized rent in ZIP 01525. Landlords must consider this when setting their rental rates and evaluating the financial implications of accepting Section 8 vouchers.

Data Sources: FMR data from HUD (2027).

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.