Section 8 Fair Market Rent (FMR) for ZIP 28234 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 28234, which falls under the Charlotte-Concord-Gastonia County area, operate based on the Specific Area Fair Market Rent (SAFMR) rather than a uniform rate across the entire metro/county region. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this ZIP code is set at $1650. This figure represents the maximum amount that a landlord can charge for rent if they participate in the Section 8 program.

Under the Section 8 Housing Choice Voucher Program, the payment structure is designed to cover the difference between the tenant's contribution and the actual rent charged. Tenants are generally expected to pay 30% of their adjusted income towards rent. For instance, if a tenant's monthly income is $1,000, they would contribute $300 towards the rent of a two-bedroom apartment. The remainder, up to the SAFMR of $1650, is subsidized by the government.

In addition to the base rent, landlords also receive utility allowances. These allowances vary but are typically calculated based on average utility costs in the area. For a two-bedroom apartment in ZIP 28234, the utility allowance might be around $200 per month, although the exact amount depends on the specifics of the voucher and the tenant's needs.

To illustrate, if a landlord charges the maximum allowable rent of $1650, and the tenant contributes $300, the government will pay the remaining $1350. If there is an additional utility allowance of $200, the total reimbursement to the landlord could be $1550. This leaves a shortfall of $100 for the landlord compared to the full rent of $1650.

The SAFMR of $1650 is specifically tailored to reflect the rental conditions in ZIP 28234, ensuring that it accurately represents the local housing market. However, the local market rent is currently listed as N/A, indicating that there isn't enough data to provide a clear comparison against the SAFMR. Despite this, the SAFMR serves as a guideline for setting rents within the Section 8 program.

Landlords should be aware that participating in the Section 8 program means accepting a fixed rent ceiling for their properties. While this provides a steady stream of income, it also means that they cannot charge above the SAFMR without risking non-payment from the voucher program. In ZIP 28234, landlords will typically face a reimbursement gap of $100 for a two-bedroom unit when the government pays the subsidy plus the utility allowance.

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.