Section 8 Fair Market Rent (FMR) for ZIP 25332 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 25332, located in Charleston County, WV, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1000 for fiscal year 2024. This figure represents the maximum amount that the government will pay towards rent for eligible tenants under the Section 8 program.

In contrast, the local market rent for a similar unit is currently unavailable. However, understanding the SAFMR is crucial for landlords who wish to participate in the Section 8 program. When a tenant uses a voucher, they are responsible for paying approximately 30% of their adjusted income toward rent. The remainder is subsidized by the government, up to the SAFMR limit.

The voucher payment system includes both a base rental amount and utility allowances. For a two-bedroom unit, the utility allowance is typically separate from the base rent and can vary. In ZIP 25332, if the total rent exceeds $1000, the landlord will not receive additional funds beyond this limit, even if the market rent is higher. Conversely, if the market rent is lower than the SAFMR, the landlord might receive less subsidy but still benefit from the stability and support offered by the program.

To illustrate, if a tenant's portion of the rent is $300, and the utility allowance is $150, then the total subsidy from the government would be $650. This brings the total rent received by the landlord to $1000 ($300 from the tenant + $650 from the government subsidy). If the actual market rent for a two-bedroom unit is higher than $1000, landlords must consider whether they can afford to accept a lower rent or if they should adjust their properties to better fit the SAFMR guidelines.

Given the SAFMR of $1000 and assuming a typical tenant contribution and utility allowance, landlords in ZIP 25332 can expect a reimbursement gap where the market rent is higher than the SAFMR. This gap would be the difference between the actual market rent and the $1000 subsidy. If the market rent were hypothetically $1200, the landlord would face a reimbursement gap of $200 per month. On the other hand, if the market rent is below $1000, landlords would receive the full SAFMR, resulting in a surplus.

In summary, landlords in ZIP 25332 need to carefully assess the SAFMR of $1000 against the actual market rent when deciding whether to participate in the Section 8 program. The reimbursement gap or surplus will directly impact their monthly income from such rentals.

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.