Section 8 Fair Market Rent (FMR) for ZIP 20415 - 2027

FY 2027 Fair Market Rent Rates

In ZIP code 20415, the economics of Section 8 housing are straightforward. The SAFMR (Standard Amount for Moderate Rent) for a two-bedroom apartment is set at $2,200 per month for fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards a tenant's rent. It's important to note that the SAFMR is specific to this ZIP code, meaning it reflects the local rental market conditions.

The actual rent a landlord receives under Section 8 is composed of two parts: the voucher payment and the tenant's contribution. The tenant is required to pay 30% of their adjusted income toward the rent. For example, if a tenant's monthly income is $1,500, they would contribute $450 ($1,500 x 0.30) toward the rent. The remaining amount is covered by the voucher, up to the SAFMR limit of $2,200. Therefore, in this scenario, the voucher would pay $1,750 ($2,200 - $450).

Additionally, landlords must account for utility allowances. These allowances vary but typically cover a portion of the tenant's utilities. For a two-bedroom unit, the allowance might be around $200 per month. This amount is added to the voucher payment, bringing the total reimbursement to $1,950 ($1,750 + $200).

To summarize, a landlord in ZIP 20415 can expect to receive $1,950 per month for a two-bedroom apartment, assuming the tenant's portion is $450 and the utility allowance is $200. Given that the local market rent data is currently unavailable, it's difficult to provide a precise comparison between the SAFMR and the average market rent. However, based on the SAFMR alone, landlords should anticipate a potential reimbursement gap if the market rent exceeds $2,200. Conversely, if the market rent is below this figure, landlords may see a surplus in their rental income.

The reimbursement gap or surplus depends on the actual market rent. If the market rent is higher than $2,200, landlords will have to absorb the difference. For instance, if the market rent is $2,500, the landlord would receive only $1,950 from the voucher program, creating a gap of $550. On the other hand, if the market rent is lower than $2,200, say $2,000, the landlord would receive $1,950, resulting in a surplus of $50 compared to the market rent.

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.