Section 8 Fair Market Rent (FMR) for ZIP 02722 - 2027

FY 2027 Fair Market Rent Rates

To understand the economics of Section 8 housing in ZIP code 02722, it's essential to focus on the Specific Area Fair Market Rent (SAFMR) which is set at $1590 for a two-bedroom apartment for the fiscal year 2024. This SAFMR is specific to this ZIP code, meaning that landlords within 02722 can expect this rate to apply directly to their properties.

The SAFMR figure represents the maximum amount that the Housing Choice Voucher program will pay toward a tenant's rent. However, this amount does not cover the entire cost of renting a property. Tenants are required to contribute a portion of their income towards the rent, typically around 30% of their adjusted monthly income. For example, if a tenant's adjusted monthly income is $1000, they would be expected to pay $300 towards the rent.

In addition to the tenant contribution, there are utility allowances that must be considered. These allowances vary but generally provide a fixed amount per bedroom type to help cover utilities. For a two-bedroom apartment, the utility allowance might be around $200-$300 per month, depending on the specifics of the voucher and the region's average utility costs.

To calculate the actual reimbursement a landlord can expect, you must add the tenant's contribution to the utility allowance and then subtract this total from the SAFMR. Using the example above, if the tenant contributes $300 and the utility allowance is $250, the total contribution from the tenant and the voucher program would be $550. Therefore, the voucher program would pay the remaining $1040 out of the $1590 SAFMR.

The local market rent for ZIP 02722 is currently unavailable, making it difficult to compare the SAFMR to typical rental rates in the area. However, it's important to note that landlords should aim to keep their rents competitive with the local market to attract tenants. If the market rent is higher than the SAFMR, landlords will face a reimbursement gap, where the voucher payment plus the tenant contribution falls short of covering the full rent.

For instance, if the market rent for a two-bedroom apartment in 02722 is $1650, the landlord would receive only $1040 from the voucher program and the tenant, resulting in a shortfall of $610. Conversely, if the market rent is lower than the SAFMR, landlords may benefit from a surplus, where the voucher payment exceeds the market rent.

In summary, landlords in ZIP 02722 participating in the Section 8 program should anticipate receiving a maximum of $1590 for a two-bedroom unit, with adjustments based on the tenant's income and utility allowances. Given the lack of specific local market rent data, the potential reimbursement gap or surplus cannot be precisely determined; however, it's clear that landlords need to manage their expectations and pricing strategies carefully to remain competitive and financially viable.

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.