Section 8 Fair Market Rent (FMR) for ZIP 13504 - 2027

FY 2027 Fair Market Rent Rates

To understand how Section 8 economics work in ZIP 13504, it's important to know that the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1010 for fiscal year 2024. This figure represents the maximum amount that the federal government will pay toward a tenant's rent under the Section 8 Housing Choice Voucher program.

The SAFMR is designed to reflect the rental market conditions in a particular area, but without specific local market rent data available, we can only work with the SAFMR as our benchmark. Landlords should be aware that the actual market rents can vary significantly, and they might have to adjust their expectations accordingly.

A Section 8 voucher works by covering the difference between what a low-income family can afford and the rent of the apartment. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. Any amount above this is covered by the voucher, up to the SAFMR limit. In addition to base rent, there are utility allowances which also contribute to the total reimbursement. However, these allowances do not increase the overall reimbursement beyond the SAFMR cap.

Let's assume a hypothetical scenario where a tenant has an adjusted monthly income of $2000. Thirty percent of this income would be $600, which is the tenant's portion of the rent. If the total rent plus utilities is $1010, the voucher would cover the remaining $410, making the total reimbursement exactly equal to the SAFMR.

In practice, if the rent plus utilities exceeds the SAFMR, the landlord does not receive the excess amount. Therefore, the landlord must ensure that the rent charged is reasonable and does not exceed the $1010 limit, unless the tenant can afford the additional cost themselves.

The typical reimbursement gap or surplus in ZIP 13504 depends on whether the market rents are higher or lower than the SAFMR. Given the SAFMR of $1010, if the market rent is below this amount, landlords could potentially see a surplus, meaning they receive more than they would typically charge. Conversely, if the market rent is higher, landlords will face a gap, receiving less than the market rate.

Without precise local market rent data, it's challenging to provide a definitive gap or surplus figure. However, if we were to generalize based on the SAFMR alone, landlords in ZIP 13504 should anticipate that the reimbursement will be capped at $1010, regardless of the actual 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.