Section 8 Fair Market Rent (FMR) for ZIP 20566 - 2027

FY 2027 Fair Market Rent Rates

In ZIP 20566, the Section 8 economics are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1980 for fiscal year 2024. This SAFMR is specific to this ZIP code, meaning it reflects the rental rates within 20566 rather than being averaged across a larger county or metropolitan area.

The voucher system works by covering the difference between what a tenant can afford and the actual rent. Specifically, the tenant is responsible for paying 30% of their adjusted income towards rent, and the government pays the remainder up to the SAFMR limit. For instance, if a tenant's adjusted income is $1500 per month, they would pay $450 toward rent, and the government would cover the rest up to $1980. If the total rent exceeds $1980, the landlord must either reduce the rent to match the SAFMR or accept a lower reimbursement rate.

Utility allowances are also factored into the voucher payment. These allowances vary but typically cover a portion of heating, cooling, electricity, and water costs. Landlords should be aware that these allowances do not increase the overall reimbursement amount; they are part of the total SAFMR figure.

Given the SAFMR of $1980 for a two-bedroom unit, the reimbursement gap or surplus depends on the actual market rent in ZIP 20566. Since the local market rent is currently unavailable, we cannot provide an exact figure for the reimbursement gap or surplus. However, landlords should compare their rent charges to the SAFMR to determine if they will receive the full amount or if there will be a shortfall.

To illustrate, if the market rent for a similar two-bedroom property is $2200, the landlord would face a reimbursement gap of $220. Conversely, if the market rent is below the SAFMR, such as $1700, the landlord would have a surplus of $280, meaning the voucher would cover more than the market rent. In either case, understanding the SAFMR and comparing it to your own rental rates is crucial for managing expectations and financial planning.

Landlords participating in the Section 8 program in ZIP 20566 should ensure that their rental properties meet all housing quality standards and that their rents are competitive yet reasonable given the SAFMR constraints. This approach helps in attracting tenants while maintaining profitability.

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.