Section 8 Fair Market Rent (FMR) for ZIP 21765 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 21765, located in Baltimore-Columbia-Towson County, Maryland, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $2490 for fiscal year 2024. This SAFMR figure is specific to this ZIP code, reflecting local rental market conditions more accurately than broader county or metro-level rates.

To understand the financial impact on landlords, it's crucial to break down the components of a Section 8 voucher payment. The total rent is divided into two parts: the tenant's portion and the government's subsidy. The tenant's contribution is generally 30% of their adjusted income, but there is a minimum threshold that must be met. For example, if a tenant's adjusted income is $1500 per month, they would contribute $450 (30% of $1500), but this amount could be higher if it exceeds the minimum threshold required by the program.

Beyond the base rent, the voucher also includes an allowance for utilities. This allowance varies based on the size of the unit and the region. In ZIP 21765, the utility allowance for a two-bedroom apartment is not explicitly provided, but it typically ranges from $300 to $500 per month. Therefore, the total reimbursement a landlord can expect from a Section 8 voucher is the sum of the tenant's portion and the utility allowance, up to the SAFMR limit of $2490.

Let's illustrate with an example. If a tenant contributes $450 and the utility allowance is $400, the total reimbursement would be $850. However, since this amount does not reach the SAFMR of $2490, the landlord would receive the full SAFMR amount of $2490, assuming the rent asked does not exceed this limit. It's important to note that the rent charged cannot exceed the SAFMR, and any increase must be justified by HUD (Housing and Urban Development).

Given the SAFMR of $2490, and without specific data on the local market rent for ZIP 21765, we can infer that the typical reimbursement gap or surplus will depend on the actual market rents. If the market rent is below $2490, landlords may find themselves with a surplus. Conversely, if the market rent exceeds $2490, landlords will face a gap between the voucher reimbursement and the market rate.

In summary, landlords in ZIP 21765 should aim to keep their rent for a two-bedroom apartment at or below $2490 to maximize their income from Section 8 vouchers. The exact surplus or gap will vary depending on the local market conditions, but the SAFMR provides a clear guideline for setting rental rates.

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.