Section 8 Fair Market Rent (FMR) for ZIP 25628 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To understand the economics of Section 8 housing in ZIP code 25628, it's essential to break down the components that affect a landlord's income. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $870. This figure represents the maximum amount that the Housing Choice Voucher Program will pay for rent in this specific area.

The SAFMR is used to determine the reimbursement rate for landlords who participate in the Section 8 program. Here's how it works:

• Tenant Portion: The tenant is required to contribute 30% of their adjusted income towards rent. If a tenant's adjusted income is $1,000 per month, they would pay $300 toward the rent.
• Voucher Payment: The remaining balance is covered by the voucher, up to the SAFMR limit. In our example, if the SAFMR is $870 and the tenant contributes $300, the voucher would cover $570 of the rent.
• Utility Allowances: Utility allowances are separate from the rent reimbursement and vary based on the location and type of unit. These allowances are meant to help cover the cost of utilities such as electricity, water, and gas.

The reimbursement gap or surplus occurs when the local market rent differs from the SAFMR. However, since the local market rent for ZIP 25628 is currently unavailable, we can only rely on the SAFMR to assess potential income. For a landlord in ZIP 25628, the typical reimbursement for a two-bedroom unit would be $870, assuming the rent does not exceed this amount. If the rent charged is higher than $870, the landlord will face a reimbursement gap, meaning they won't receive the full amount from the voucher program, and the difference must be paid by the tenant directly. Conversely, if the rent is lower than $870, the landlord receives the full rent amount without any shortfall.

In summary, for a two-bedroom apartment in ZIP 25628, the landlord can expect a reimbursement of $870, which includes the tenant's contribution and the voucher payment. Landlords should carefully consider their rental rates to ensure they do not exceed the SAFMR limit, as doing so could result in a financial gap that needs to be filled by the tenant.

Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).

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.