Section 8 Fair Market Rent (FMR) for ZIP 06142 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 06142, which encompasses parts of Hartford, West Hartford, and East Hartford, Connecticut, are centered around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment. For fiscal year 2024, the SAFMR for a 2BR in this ZIP code is set at $1650. This figure represents the maximum amount that a landlord can expect to receive from the government for a Section 8 voucher tenant.

To understand how this works in practice, let's break down the components. The $1650 SAFMR includes both the base rent and an allowance for utilities. However, the actual amount paid to the landlord will be the lesser of the SAFMR or the market rent of the unit, adjusted for the tenant's portion of the rent. Typically, the tenant is responsible for paying approximately 30% of their income towards rent. If the tenant's income is low enough, the government subsidy will cover the difference between their payment and the total rent up to the SAFMR limit.

For instance, if a tenant's income dictates they pay $495 (30% of a hypothetical $1650 monthly income), then the government would pay the remaining $1155 to reach the $1650 SAFMR. Utilities are also factored into the equation, but the specific allowance amounts depend on the individual case and are capped by the program.

In ZIP 06142, since the local market rent data is currently unavailable, we must rely on the SAFMR to guide our analysis. Given that the SAFMR is the benchmark, landlords should ensure that their rents do not exceed this amount to maximize their potential income under the Section 8 program. If the market rent were higher than $1650, the landlord would only receive the SAFMR amount, leading to a potential loss compared to market rates.

The typical reimbursement gap or surplus in this scenario depends on whether the market rent is higher or lower than the SAFMR. Since the local market rent is listed as N/A, we assume it aligns closely with the SAFMR. Therefore, landlords who set their rents at $1650 or below will receive full reimbursement for their units without any significant surplus or deficit. If the market rent were lower, say $1500, then the landlord would receive the full $1500 plus the government subsidy for the tenant's portion, resulting in a smaller gap or even a surplus due to the utility allowances.

In conclusion, landlords in ZIP 06142 participating in the Section 8 program should aim to keep their rents at or below the $1650 SAFMR to avoid financial losses and to ensure they receive the maximum allowable subsidy from the government. This approach guarantees steady income while providing affordable housing options to eligible tenants.

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.