Section 8 Fair Market Rent (FMR) for ZIP 03041 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 03041, which encompasses parts of Lawrence County, Massachusetts, can be broken down into several key components to help landlords understand their financial situation when participating in the program. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1900. This figure represents the maximum amount that the government will pay towards the rental cost of a two-bedroom unit under the Section 8 Housing Choice Voucher program.

To clarify the payment structure, it's important to note that the actual rent paid by a landlord is composed of two parts: the tenant's contribution and the government subsidy. Typically, the tenant is expected to pay 30% of their adjusted income towards rent. For instance, if a tenant's monthly adjusted income is $1600, they would contribute $480 ($1600 x 0.30) towards the rent. The government would then cover the remaining balance up to the SAFMR limit of $1900. In this example, the government would pay $1420, bringing the total rent to $1900.

In addition to the base rent, landlords also receive utility allowances to offset the costs associated with heating, cooling, and other utilities. These allowances vary based on the type of unit and the region but are generally included in the overall reimbursement calculation. Therefore, the total reimbursement received by the landlord includes both the rent subsidy and the utility allowance.

The SAFMR for ZIP 03041 is specifically tailored to reflect the local rental market conditions. However, since the local market rent is not available, it is crucial for landlords to compare the SAFMR to their own market knowledge and adjust their expectations accordingly. If the local market rent exceeds the SAFMR, landlords might face a reimbursement gap where they do not fully recover their costs from the voucher program alone. Conversely, if the local market rent is below the SAFMR, landlords could see a surplus, meaning they receive more than their usual market rent.

Given the SAFMR of $1900 for a two-bedroom apartment in ZIP 03041, landlords should expect a reimbursement that closely matches this figure, depending on the tenant's income and any applicable utility allowances. Without specific local market rent data, landlords must rely on the SAFMR to gauge their potential income from renting to a Section 8 tenant. In most cases, the reimbursement will either match or be slightly less than the SAFMR, leading to a neutral or slightly negative impact on the landlord's cash flow.

In conclusion, landlords in ZIP 03041 can anticipate receiving a total reimbursement of around $1900 for a two-bedroom unit, assuming the tenant's income and utility usage align with typical scenarios. This amount reflects the economic reality of the Section 8 program in this specific ZIP code and should be considered when deciding whether to participate in the program.

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.