Location: Charlotte-Concord-Gastonia, NC | Metro: Charlotte-Concord-Gastonia, NC-SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,670 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
The economics of Section 8 in ZIP code 28280 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1650. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for such a unit. However, it's important to note that the local market rent for 2BR units in ZIP 28280 is currently unavailable, which makes direct comparisons challenging.
A voucher payment is calculated based on several factors including the tenant's portion of the rent and any utility allowances. Typically, tenants are required to contribute 30% of their adjusted income toward rent. If a tenant's income is $2000 per month, their contribution would be $600 ($2000 * 0.30), leaving $1050 for the voucher program to cover. Utility allowances can vary but often add an additional $200 to $300 to the total voucher payment. Therefore, if we assume a utility allowance of $250, the total voucher payment would be around $1300.
This means that in ZIP 28280, landlords who participate in the Section 8 program can expect a reimbursement of approximately $1300 for a two-bedroom apartment. Given the SAFMR of $1650, there is a potential surplus for landlords who can negotiate a higher rent with the local housing authority, but only up to the SAFMR limit. Conversely, if the market rent exceeds the SAFMR, landlords may face a reimbursement gap where they receive less than the market rate for their property.
In conclusion, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 28280 under the Section 8 program is about $350. This figure represents either the extra amount landlords might have to absorb if market rents are higher than the SAFMR, or the surplus they could potentially earn if market rents are lower than the $1650 SAFMR. It's crucial for landlords to understand these dynamics when considering participation in the Section 8 program.
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.