Section 8 Fair Market Rent (FMR) for ZIP 10542 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 10542 operate under specific financial guidelines that landlords need to understand to make informed decisions. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $2600. This figure is crucial as it represents the maximum amount that the housing authority will pay on behalf of the tenant.

To break down the actual payment structure, the SAFMR of $2600 is divided into the tenant's portion and the utility allowance. Typically, the tenant is required to pay approximately 30% of their adjusted income towards rent. If we assume an average adjusted income of $1733 per month, which is common for Section 8 participants, the tenant would contribute about $520 towards the rent.

In addition to the tenant's contribution, there is also a utility allowance. For ZIP 10542, this allowance can vary but is generally around $300 to cover electricity, gas, water, and sewer costs. This means that the total reimbursement from the housing authority to the landlord would be the SAFMR minus the tenant's contribution plus the utility allowance.

Therefore, the typical reimbursement for a landlord would be calculated as follows: $2600 (SAFMR) - $520 (tenant's portion) + $300 (utility allowance) = $2380. This calculation shows that the landlord receives a reimbursement of $2380, leaving a gap between the SAFMR and the actual reimbursement.

Given that the SAFMR is $2600 and the typical reimbursement is $2380, the landlord faces a reimbursement gap of $220 for a two-bedroom apartment. This gap must be covered by the landlord unless the tenant's income is high enough to reduce the gap or the landlord agrees to accept the lower reimbursement rate.

Note that the SAFMR is set specifically for this ZIP code, meaning it reflects the local rental market conditions more accurately than broader metro or county-level rates. However, since the local market rent data is currently unavailable, it's important for landlords to research current rental trends in ZIP 10542 to determine if accepting a Section 8 voucher is financially viable compared to other rental options.

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.