Section 8 Fair Market Rent (FMR) for ZIP 08342 - 2027

FY 2027 Fair Market Rent Rates

In ZIP code 08342, which encompasses parts of Atlantic City-Hammonton County in New Jersey, the economics of Section 8 housing can be analyzed based on the provided SAFMR (Small Area Fair Market Rent) data. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1670. This figure represents the maximum amount that a landlord can receive from the government under the Section 8 program for a unit of this size in this specific ZIP code.

The SAFMR is crucial because it determines the upper limit of rental assistance payments. However, the actual amount paid to landlords depends on the tenant's portion of the rent and utility allowances. Tenants are typically required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this ZIP code, the calculation would proceed as follows:

Let’s say the average adjusted income for a household in ZIP 08342 is $20,000 per year. This translates to $1667 monthly. Thirty percent of this income, or $500, would be the tenant's share of the rent. The remaining $1170 ($1670 - $500) would then be covered by the Section 8 voucher program. Additionally, there are utility allowances which vary but generally add another $100-$150 to the total payment.

This means that the landlord would receive approximately $1270-$1320 per month from the Section 8 program, assuming the utility allowance is $100-$150. It's important to note that the SAFMR is specific to this ZIP code, so landlords cannot charge more than $1670 for a two-bedroom unit to qualify for the program.

Given that the local market rent data is not available, we must rely on the SAFMR as the benchmark. In this scenario, if the local market rent is below $1670, landlords might find themselves with a surplus. Conversely, if the local market rent exceeds the SAFMR, landlords will face a reimbursement gap. Without specific local market rent figures, we can only estimate that landlords could see a gap or surplus based on the difference between their usual rent rates and the $1670 SAFMR.

To summarize, for a two-bedroom apartment in ZIP 08342, landlords can expect to receive around $1270-$1320 per month from the Section 8 program. This amount covers the bulk of the rent and some utilities, but leaves a potential reimbursement gap or surplus depending on the local market conditions.

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.