Section 8 Fair Market Rent (FMR) for ZIP 24535 - 2027

FY 2027 Fair Market Rent Rates

To understand the economics of Section 8 housing in ZIP code 24535, located in Halifax County, Virginia, it's crucial to know the Subsidized Average Fair Market Rent (SAFMR) for a two-bedroom apartment is set at $910 for the fiscal year 2026. This figure represents the maximum amount the government will subsidize for a rental unit in this specific ZIP code.

The SAFMR does not reflect the actual market rent, which is currently unavailable for this ZIP code. However, this discrepancy between the government-set subsidy and the market rent can create challenges for landlords. To navigate these challenges, landlords must understand how the voucher system works.

A Section 8 voucher covers a portion of the rent based on the SAFMR, but tenants are also required to pay a portion of their income towards rent. Specifically, the tenant pays approximately 30% of their adjusted monthly income toward rent. In ZIP 24535, if a tenant's income is $1,500 per month, they would contribute around $450 towards the rent. The government then pays the difference up to the SAFMR limit of $910. Thus, in this scenario, the government would cover $460 of the rent.

In addition to the base rent, there are utility allowances. These allowances vary but generally provide a fixed amount to cover utilities. For ZIP 24535, the utility allowance for a two-bedroom apartment is $275 (FY 2026). This means the total payment to the landlord from the voucher program would be the sum of the government subsidy and the utility allowance, totaling $735 ($460 + $275).

Given the SAFMR of $910, if the market rent exceeds this amount, landlords will face a reimbursement gap. For instance, if the market rent for a two-bedroom apartment is $1,000, the landlord would receive $735 from the voucher program, leaving a $265 reimbursement gap per month. Conversely, if the market rent is below $910, landlords might benefit from a surplus, where the tenant's contribution plus the government subsidy could exceed the rent charged, providing additional funds for maintenance or other expenses.

In summary, landlords in ZIP 24535 must consider the SAFMR of $910, the tenant's contribution based on their income, and the utility allowance of $275 when determining whether to participate in the Section 8 program. Given the current lack of market rent data, it's important to research local conditions to assess potential gaps or surpluses accurately.

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.