Section 8 Fair Market Rent (FMR) for ZIP 04772 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The economics of Section 8 in ZIP code 04772 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1,320 per month for fiscal year 2026. However, the local market rent for a similar unit runs significantly lower at $435 according to the Census ACS data.

A landlord might wonder what exactly a voucher covers when considering renting to a Section 8 tenant. Here’s a breakdown:

• Tenant Portion: The tenant is required to pay 30% of their adjusted income towards rent. This amount can vary widely depending on the tenant's income level.
• Voucher Payment: The housing authority will pay the difference between the tenant's contribution and the SAFMR, up to the SAFMR limit. For example, if the tenant's portion is $396 (which would be 30% of an annual income of $15,840), then the housing authority would cover the remaining $924 ($1,320 - $396).
• Utility Allowances: Utility allowances are also factored into the equation. These allowances can range but typically do not exceed the tenant's portion of the rent. They are designed to help cover utilities such as electricity, gas, water, and sewage.

In ZIP 04772, the SAFMR is set specifically for this area, meaning it does not apply uniformly across a larger metro or county area. This specificity aims to reflect the actual rental costs in the area more accurately.

Given these figures, landlords should anticipate a significant reimbursement gap. The SAFMR of $1,320 far exceeds the local market rent of $435, which means the housing authority's payment is likely to cover much more than the actual market value of the property. This results in a surplus for landlords who participate in the program. Specifically, if we assume the tenant's portion is around $396, the housing authority would cover $924 of the SAFMR, leading to a total of $1,320. Since the market rent is only $435, the landlord would receive $885 above the market rate, even without accounting for utility allowances.

This economic reality makes participating in Section 8 financially beneficial for landlords in ZIP 04772, as they can expect to earn a substantial surplus over the typical market rent for a two-bedroom unit.

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.