Section 8 Fair Market Rent (FMR) for ZIP 20071 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 20071, located in Washington-Arlington-Alexandria County, DC, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is set at $1980. This figure represents the maximum amount that the housing authority will pay to landlords on behalf of tenants participating in the Section 8 Housing Choice Voucher program.

However, the actual reimbursement to landlords depends on several factors, including the tenant's portion of the rent and any utility allowances. Tenants are typically required to contribute 30% of their adjusted income toward the rent. If a tenant's adjusted income is $1500 per month, they would owe $450 towards the rent. The remaining balance up to the SAFMR limit would be covered by the voucher. In this example, the housing authority would reimburse the landlord the difference between the tenant's contribution and the SAFMR, which is $1530.

Utility allowances can vary but generally provide additional funds to cover electricity, gas, water, and sewer costs. These allowances are subtracted from the total reimbursement to ensure that the sum does not exceed the SAFMR. If the utility allowance for this ZIP code is $200, then the landlord would receive $1330 for rent and $200 for utilities, totaling $1530.

Given the SAFMR of $1980 for a two-bedroom apartment, landlords should expect a reimbursement gap if the local market rent exceeds this amount. Conversely, if the market rent is below the SAFMR, landlords could see a surplus. Since the local market rent for ZIP 20071 is currently not available, it's important for landlords to compare their rental rates against the SAFMR to determine potential gaps or surpluses.

In summary, landlords in ZIP 20071 can anticipate receiving a reimbursement of approximately $1530 for a two-bedroom apartment, assuming a standard 30% tenant contribution and a utility allowance of $200. The exact amount varies based on the tenant's income and the specifics of the utility allowance, but it provides a solid basis for understanding the economic realities of accepting Section 8 vouchers in this particular ZIP code.

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.