Section 8 Fair Market Rent (FMR) for ZIP 12181 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 12181, located within Albany-Schenectady-Troy County in New York, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1320 per month for fiscal year 2024. This figure represents the maximum amount the government will pay towards rent for a unit deemed suitable under the program.

To understand what a landlord can expect to receive from a Section 8 voucher, it's important to break down the components. The tenant is required to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 for tenants in this area, they would contribute approximately $450 monthly. The remaining balance is covered by the government up to the SAFMR limit.

In addition to the base rent, utility allowances must be considered. For ZIP 12181, the utility allowance is not specified in the data provided, but typically, it ranges from $200 to $300 per month depending on the number of bedrooms and local utility costs. Assuming a utility allowance of $250, this would be an additional payment made directly to the landlord.

Therefore, if a tenant's contribution is $450 and the utility allowance is $250, the total reimbursement from the government would be $1320 - $450 = $870 plus the utility allowance of $250. This brings the total monthly reimbursement to $1120. However, since the local market rent is not available, we cannot calculate the exact surplus or shortfall for landlords renting out two-bedroom units at the market rate.

Landlords should note that the SAFMR is specific to this ZIP code and does not apply uniformly across the entire metro/county area. This means that the rental rate must not exceed $1320 to qualify for full reimbursement under the Section 8 program. Any rent above this amount will not be compensated by the government, leaving the landlord to absorb the difference.

Given the SAFMR of $1320 and a tenant contribution of $450, landlords in ZIP 12181 would have a reimbursement gap if they charge more than $1320 for a two-bedroom unit. Conversely, if the market rent is below $1320, landlords might see a surplus when compared to typical market rates. To determine the actual gap or surplus, landlords need to compare their asking price with the SAFMR and the tenant's contribution.

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.