Section 8 Fair Market Rent (FMR) for ZIP 04332 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 04332, located in Kennebec County, Maine, can be straightforward if you understand how the SAFMR (Small Area Fair Market Rent) works. For fiscal year 2026, the SAFMR for a two-bedroom apartment in this ZIP code is set at $1,420. This figure is specific to this ZIP code, meaning it's tailored to reflect the local rental market conditions.

The SAFMR represents the maximum amount that a landlord can receive from the government via a housing choice voucher. However, the actual payment a landlord receives depends on the tenant's contribution and any utility allowances. Tenants are typically required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $2,000 per month, the tenant would contribute $600 towards the rent.

The remaining balance, which is the difference between the SAFMR and the tenant's contribution, is covered by the government. In this case, the government would pay the landlord $820 ($1,420 - $600). It’s important to note that this does not include utility allowances, which can vary based on the specific circumstances of the tenant and the region. Utility allowances are additional payments made directly to the landlord to cover utilities.

To give you a clearer picture, let’s consider the reimbursement process step-by-step:

• Tenant Contribution: 30% of adjusted income, in our example, $600.
• Government Payment: The difference between the SAFMR and the tenant contribution, here $820.
• Utility Allowances: These are paid separately and can range depending on the tenant’s needs and local rates.

Given that the local market rent data is currently unavailable, it's challenging to provide a precise comparison. However, the SAFMR of $1,420 serves as a benchmark for landlords to understand the maximum potential reimbursement they can receive. Typically, if the market rent is higher than the SAFMR, landlords will face a reimbursement gap, where they might have to subsidize the remaining cost. Conversely, if the market rent is lower, landlords could see a surplus in their overall rental income.

In ZIP 04332, landlords should anticipate a reimbursement gap since the SAFMR is likely below the actual market rent for a two-bedroom apartment. To accurately gauge this gap, landlords would need to compare the SAFMR against their own rental rates or those prevailing in the local market. Without specific market rent data, it's recommended to conduct a web search for current rental listings in ZIP 04332 to get a sense of the local market dynamics.

For instance, if the market rent for a two-bedroom apartment is $1,600, then the reimbursement gap would be $180 per month ($1,600 - $1,420).

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.