Section 8 Fair Market Rent (FMR) for ZIP 28224 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 28224, which is part of the Charlotte-Concord-Gastonia metropolitan area in North Carolina, operate based on the SAFMR (Small Area Fair Market Rent) system. For a two-bedroom apartment in this specific ZIP code, the SAFMR for fiscal year 2024 is set at $1650. This figure represents the maximum amount that the Housing Choice Voucher program will reimburse landlords for rent.

The SAFMR is determined for this specific ZIP code, meaning it reflects the local rental market conditions more accurately than a broader county-level rate would. However, the local market rent data for 28224 is currently unavailable, which makes direct comparisons challenging.

When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically around 30% of their income. In addition to the base rent, there are also utility allowances that can be included in the total reimbursement. These allowances vary but generally cover a reasonable estimate of the tenant's utility costs.

To illustrate, if a landlord charges $1650 for a two-bedroom unit, the voucher will cover up to this amount. If the tenant's portion of the rent is $500 and the utility allowance is $150, then the landlord receives $500 directly from the tenant and $1650 from the voucher program, totaling $2150. However, if the market rent exceeds $1650, the landlord must accept the $1650 as the maximum reimbursement for rent from the voucher program.

The reimbursement gap or surplus depends on the actual market rent compared to the SAFMR. Since the local market rent is not available, we cannot definitively state whether there is a gap or surplus. But if the market rent were higher than $1650, landlords would face a reimbursement gap, where they receive less than the full market rent. Conversely, if the market rent were lower, landlords might see a surplus relative to the cost of maintaining the property.

In conclusion, landlords in ZIP 28224 should expect to receive up to $1650 for a two-bedroom apartment from the Section 8 voucher program, plus any applicable tenant and utility payments. The exact financial impact will depend on the comparison between the SAFMR and the actual market rents for similar units in the area.

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.