Section 8 Fair Market Rent (FMR) for ZIP 02643 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 02643 operate under specific guidelines that affect both landlords and tenants. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1840 per month for the fiscal year 2024. This figure represents the maximum amount that the housing authority will reimburse landlords for rent, based on the local rental market conditions.

Section 8 vouchers cover a significant portion of the rent, but not all of it. The voucher payment is calculated by subtracting the tenant's portion from the SAFMR. The tenant's portion is typically 30% of their adjusted monthly income, which is determined by the Department of Housing and Urban Development (HUD).

To illustrate, if a tenant's adjusted monthly income is $1000, they would be responsible for paying $300 towards the rent. The remaining $1540 would be covered by the Section 8 voucher, assuming the SAFMR is fully utilized. However, if the total rent exceeds the SAFMR, the tenant must pay the difference out-of-pocket, in addition to their 30% contribution.

Utility allowances also play a role in the overall economics of Section 8. These allowances are separate from the rent reimbursement and vary depending on the number of bedrooms and the region. For ZIP 02643, the utility allowance for a two-bedroom unit is not specified in the provided data, but it is important to note that these allowances can range from $200 to $400 per month. Landlords should consider these utility allowances when calculating the total compensation they receive from Section 8.

In ZIP 02643, where the SAFMR is $1840, landlords might find themselves with a reimbursement gap or surplus depending on the actual market rent for two-bedroom apartments. Since the local market rent data is not available, we cannot provide a precise comparison. However, if the market rent were higher than the SAFMR, landlords would face a reimbursement gap, meaning they would receive less money from the voucher program than the market rate suggests. Conversely, if the market rent is lower than the SAFMR, landlords would benefit from a surplus, receiving more than the typical market rent.

Given the SAFMR of $1840, landlords should ensure that their rental properties meet the quality standards required by the Section 8 program to avoid any disputes over the rental amount. It is crucial to understand that the SAFMR is set for this specific ZIP code, making it reflective of the local rental market conditions rather than a broader regional average.

Ultimately, the financial impact of participating in the Section 8 program in ZIP 02643 depends on the actual market rents compared to the SAFMR. Landlords need to balance the guaranteed rental income from the government with the potential for a reimbursement gap or surplus.

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.