Section 8 Fair Market Rent (FMR) for ZIP 06721 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 06721, which encompasses parts of Waterbury-Shelton County in Connecticut, are straightforward when analyzed through the lens of 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 $1600. This figure is specifically tailored to reflect the rental market conditions within ZIP 06721, ensuring that it accurately represents the local economic environment.

To understand what a landlord receives from a Section 8 voucher, we must break down the components of the payment. The total rent is divided into two parts: the tenant's portion and the government subsidy. Typically, the tenant contributes 30% of their adjusted income towards the rent, while the rest is covered by the voucher program. However, the government will only pay up to the SAFMR, which in this case is $1600.

Let's consider an example where the tenant's portion of the rent is $480, assuming their adjusted income is $1600 per month. The government would then cover the remaining amount, but not exceeding the SAFMR. If the actual rent is higher than $1600, the landlord does not receive the difference. Conversely, if the rent is lower, the government will pay the lesser amount plus the tenant's contribution, but still not exceeding the SAFMR.

In addition to the base rent, there are utility allowances. These vary based on the type of utilities used in the property and can add a few hundred dollars to the monthly reimbursement. For instance, if the utility allowance is $200, the total reimbursement a landlord might expect could be around $1800 per month for a 2BR unit.

Given that the local market rent data is currently unavailable, we cannot provide a direct comparison. However, if the market rent were higher than the SAFMR, landlords would face a reimbursement gap, meaning they would not receive the full market rent. If the market rent is lower than the SAFMR, landlords would benefit from a surplus, receiving more than the local market rate.

Based on the SAFMR of $1600, landlords should prepare for a potential reimbursement gap if the local market rent exceeds this amount. Alternatively, if the local market rent is below $1600, landlords will have a surplus, benefiting from the higher SAFMR rate.

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.