Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,100 |
| 1 Bedroom | $3,250 |
| 2 Bedrooms | $3,870 |
| 3 Bedrooms | $4,630 |
| 4 Bedrooms | $5,120 |
| 5 Bedrooms | $5,939 |
| 6 Bedrooms | $6,652 |
| 7 Bedrooms | $7,184 |
| 8 Bedrooms | $7,543 |
U.S. Census Bureau data (2024)
In ZIP 02163, which is located in New Hampshire, the economics of Section 8 vouchers can be analyzed based on the SAFMR (Section 8 Moderate Rent) and local market rent figures. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is set at $4100. This rate is specifically tailored for this ZIP code, reflecting the unique cost structure and rental market dynamics present here.
The local market rent for a two-bedroom unit, according to Census ACS data, stands at $3,501. When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent, typically around 30% of their income, plus any applicable utility allowances. Let's assume an average tenant income that requires them to pay $1,050 towards the rent, which is 30% of the local market rent. The remaining amount, up to the SAFMR, is covered by the government.
In this scenario, the government would reimburse the landlord the difference between the tenant's contribution and the SAFMR. Therefore, if the tenant contributes $1,050, the government will cover the rest, up to $4100. This means the government would pay $3,050 ($4100 - $1,050).
If the actual market rent for a two-bedroom unit in ZIP 02163 is $3,501, then the landlord would receive the full market rent plus an additional $599 ($3,050 + $1,050 = $3,650, which is above the market rent of $3,501). In this case, there is a surplus for the landlord, totaling $599 per month.
However, if the landlord charges exactly the SAFMR rate of $4100, the landlord would receive the full $4100, with the tenant contributing $1,050 and the government covering $3,050. This would result in a reimbursement gap for the landlord, as the market rent is lower than the SAFMR. The gap would be $599 per month ($4100 - $3,501).
To summarize, landlords in ZIP 02163 should consider these economic factors when deciding whether to accept Section 8 vouchers. If the landlord sets the rent at the market rate of $3,501, they will receive a surplus of $599 per month. Conversely, if the landlord sets the rent at the SAFMR rate of $4100, they will face a reimbursement gap of $599 per month. Landlords must weigh these figures against their own costs and preferences when making decisions about participating in the Section 8 program.
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.