Section 8 Fair Market Rent (FMR) for ZIP 10911 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 10911 are governed by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For fiscal year 2024, the SAFMR for a two-bedroom apartment in 10911 is $3730. This figure represents the maximum amount that the government will pay towards rent and utilities for eligible tenants under the Section 8 Housing Choice Voucher program.

Local market rents in ZIP 10911 are currently unavailable, making it difficult to compare the SAFMR against typical rental rates. However, understanding the SAFMR is crucial for landlords as it directly impacts their income when renting to tenants with vouchers.

A Section 8 voucher pays a portion of the total rent based on the tenant's ability to pay. Typically, the tenant is responsible for paying approximately 30% of their adjusted monthly income toward rent. The remainder, up to the SAFMR limit, is paid by the government. In addition to the base rent, there are utility allowances that can vary but generally do not exceed the total SAFMR.

To illustrate, if a tenant's portion of the rent is $1000, then the government would cover the difference up to the SAFMR limit of $3730. This means the landlord could receive $2730 from the government plus the $1000 from the tenant, totaling $3730 per month. It is important to note that the actual reimbursement to the landlord might be less than the SAFMR if the market rent is lower.

If the market rent exceeds the SAFMR, the tenant must make up the difference. For instance, if a two-bedroom apartment in ZIP 10911 is priced at $4000, the government will only reimburse up to $3730. The tenant would need to pay the additional $270 out-of-pocket, along with their 30% contribution, to meet the full market rent.

In ZIP 10911, given the SAFMR of $3730, landlords should expect a reimbursement gap if they set their rents above this amount. Conversely, if market rents are below $3730, landlords may experience a surplus where the government pays more than the market rate, effectively subsidizing the rent for both the tenant and the landlord.

For landlords considering participation in the Section 8 program, it is essential to balance the guaranteed government payment with potential gaps or surpluses. Understanding these dynamics helps in setting competitive rental prices while ensuring financial stability.

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.