Section 8 Fair Market Rent (FMR) for ZIP 20993 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 20993, which falls under the jurisdiction of Washington-Arlington-Alexandria County, can be analyzed using the SAFMR (Small Area Fair Market Rent) rates. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $2100. This figure represents the maximum amount that the housing authority will reimburse landlords for renting out a two-bedroom unit.

To understand how this works in practice, let's break down the components of a Section 8 voucher payment. The total rent is divided into two parts: the tenant's contribution and the government subsidy. Typically, the tenant is required to pay approximately 30% of their adjusted income towards rent. If we assume an average household income eligible for Section 8 assistance, the tenant’s share might be around $630 per month, based on a hypothetical income of $2100 before adjustments. However, this exact amount can vary depending on the individual tenant's income level.

In addition to the base rent, there are utility allowances that must be considered. These allowances cover certain utilities such as electricity, gas, water, and sewer. The utility allowance varies but is often around $300-$400 per month. Therefore, if we add a $350 utility allowance to the tenant's contribution of $630, the total monthly payment from the tenant would be approximately $980.

This means that the government would subsidize the remaining amount of the rent, which is $2100 - $980 = $1120. So, in total, a landlord would receive $2100 per month for a two-bedroom apartment, which includes both the tenant's payment and the government subsidy.

However, it's important to note that the local market rent for a two-bedroom apartment in ZIP 20993 is currently unavailable. This makes it challenging to directly compare the SAFMR with the actual market rents, but given the high cost of living in the Washington D.C. metropolitan area, it is likely that market rents exceed the SAFMR. In such a scenario, landlords may face a reimbursement gap where the total voucher payment ($2100) does not cover the full market rent.

To summarize, the typical reimbursement gap for a two-bedroom apartment in ZIP 20993 would be the difference between the local market rent and the SAFMR of $2100. Without specific local market rent data, it is difficult to quantify this gap precisely, but it exists and can be significant due to the high rental costs in the region.

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.