Section 8 Fair Market Rent (FMR) for ZIP 10020 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 10020 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $3450 per month for fiscal year 2024. This rate is specifically tailored for this ZIP code, reflecting the unique rental dynamics within 10020.

Section 8 vouchers operate under a formula where the government covers most of the rent, but the landlord must ensure the tenant contributes their share. For ZIP 10020, the tenant's portion is typically 30% of their income. If the tenant's income is $2000 per month, they would contribute $600 towards the rent. Therefore, if you have a two-bedroom apartment listed at the SAFMR of $3450, the government would cover the remaining $2850.

Utility allowances also factor into the equation. These allowances vary but generally range between $200 to $300 per month for a two-bedroom unit. This amount is intended to help cover electricity, gas, water, and sewer costs. It's important to note that the utility allowance is not guaranteed to fully cover all utilities, and tenants might still incur additional expenses.

In ZIP 10020, since the local market rent is not provided, we can infer that the SAFMR of $3450 serves as the benchmark for rental rates. However, if the market rent were higher, landlords could potentially face a reimbursement gap where the voucher does not cover the full market price. Conversely, if the market rent is lower, landlords might receive a surplus above the actual market rate.

To illustrate, let's assume the market rent for a two-bedroom apartment is $3000 per month. With a voucher paying up to $3450, landlords would receive a surplus of $450 per month. But if the market rent is $3600, the reimbursement gap would be $150 per month, meaning landlords would need to decide whether to accept this shortfall or seek other forms of payment.

In conclusion, landlords in ZIP 10020 can expect a voucher reimbursement of up to $3450 for a two-bedroom apartment. Once the tenant's contribution and utility allowances are factored in, the total can reach the full SAFMR amount. The actual financial outcome will depend on the market rent, which may lead to either a surplus or a reimbursement gap.

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.