Section 8 Fair Market Rent (FMR) for ZIP 27331 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 27331, located in Lee County, North Carolina, are based on the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For fiscal year 2026, the SAFMR for a two-bedroom apartment in this area is set at $1,140. This figure represents the maximum amount that the housing authority will pay on behalf of eligible tenants under the Section 8 Housing Choice Voucher program.

To understand what a landlord receives when a tenant uses a Section 8 voucher, it's important to break down the components involved. First, the tenant is responsible for paying 30% of their adjusted monthly income towards rent. Second, there are utility allowances which can vary but typically cover a portion of the tenant's electricity, gas, water, and sewer costs. These allowances do not increase the total payment to the landlord beyond the SAFMR limit; instead, they are considered part of the tenant's contribution to living expenses.

For example, if a tenant has an adjusted monthly income of $1,500, they would be required to pay $450 (30%) toward the rent. The remaining balance of $690 ($1,140 - $450) would then be covered by the housing authority. Utility allowances might add another $100 to the tenant's total monthly expenditure, but this does not affect the amount the landlord receives from the voucher program.

In ZIP 27331, since the local market rent data is not available, we cannot directly compare the SAFMR to the average market rates. However, the SAFMR of $1,140 serves as a benchmark for what the government deems a reasonable rent for a two-bedroom unit in this area. Landlords should ensure that their rental properties meet the quality standards set by the housing authority to qualify for the program.

The reimbursement gap or surplus refers to the difference between the actual market rent and the SAFMR. Given that the local market rent data is unavailable, it's impossible to provide a precise figure for the reimbursement gap or surplus in ZIP 27331. However, landlords should anticipate that if the market rent is higher than $1,140, they will face a reimbursement gap, meaning they won't receive the full market rent from the voucher program. Conversely, if the market rent is lower, landlords may experience a surplus, receiving more than the typical market rate for similar units.

Landlords participating in the Section 8 program in ZIP 27331 must adhere to these economic parameters to ensure compliance and receive timely payments. Understanding the SAFMR and how it interacts with tenant contributions and utility allowances is crucial for managing expectations and financial planning.

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.