Section 8 Fair Market Rent (FMR) for ZIP 14851 - 2027

FY 2027 Fair Market Rent Rates

To understand the economics of Section 8 housing in ZIP code 14851, it's essential to know the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1660 for fiscal year 2024. This figure represents the maximum amount that a landlord can receive from the Housing Choice Voucher program for a two-bedroom unit in this specific ZIP code.

The SAFMR is determined by HUD (Department of Housing and Urban Development) based on rental market conditions. It ensures that landlords are paid an amount that reflects the actual cost of renting in the area while keeping the rent affordable for low-income families. However, the local market rent for ZIP 14851 is currently listed as N/A, indicating that we need to rely on the SAFMR to guide our analysis.

A Section 8 voucher works by covering the difference between what a low-income family can afford and the SAFMR. The tenant is responsible for paying 30% of their adjusted income towards rent. If the family's income is $1000 per month, they would pay $300 ($1000 * 0.3) towards the rent. The remaining balance, up to the SAFMR of $1660, is covered by the voucher program.

In addition to the base rent, the voucher also includes utility allowances. These vary but typically cover costs such as electricity, gas, water, and sewer. For ZIP 14851, the exact utility allowance isn't specified, but it usually ranges from $100 to $200 per month. Therefore, if the utility allowance is $150, the total reimbursement a landlord can expect is $1810 ($1660 + $150).

However, landlords should note that the voucher program will only reimburse up to the SAFMR plus the utility allowance. If the market rent exceeds $1660, the landlord won't be compensated for the additional amount. In ZIP 14851, where the market rent is currently unknown, landlords must compare their asking price to the SAFMR to determine if there will be a reimbursement gap or surplus.

Given the SAFMR of $1660 and assuming a utility allowance of $150, the typical reimbursement for a two-bedroom voucher in ZIP 14851 would be $1810. If the local market rent is below this amount, landlords will see a surplus; if it's above, there will be a gap that the landlord won't be reimbursed for.

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.