Location: Alleghany County, NC | Metro: Alleghany County, NC
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
In ZIP code 28668, the economics of Section 8 housing can be clearly defined using the SAFMR (Small Area Fair Market Rent) data for a two-bedroom unit. For fiscal year 2026, the SAFMR for a 2BR in this specific ZIP code is set at $930. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards the rent of a qualifying unit. It's important to note that local market rents are currently not available, which makes the SAFMR particularly significant as it guides both landlords and tenants on what is considered a fair rental price.
A Section 8 voucher works by covering the difference between what a low-income family can afford and the SAFMR. The tenant is responsible for paying 30% of their adjusted income towards rent, plus any applicable utilities. If we assume an average adjusted income of $1,550 per month for a household eligible for a Section 8 voucher, they would contribute approximately $465 towards rent. This contribution is based on the standard formula used by the program, where 30% of the household's income is calculated to determine the tenant's portion of the rent.
The voucher itself then covers the remaining balance up to the SAFMR. In this case, if the landlord charges the full SAFMR of $930, the voucher would cover $465 ($930 - $465), ensuring the total rent does not exceed the SAFMR. However, it's crucial for landlords to understand that the voucher payment is not guaranteed to fill the entire gap; the actual reimbursement depends on the tenant's ability to pay their share.
Utility allowances are also part of the calculation but vary depending on the type of utility and the number of bedrooms. For a 2BR unit, the allowance might typically range around $200-$300 per month, which could slightly increase the total amount the voucher program reimburses.
Given these specifics, landlords should expect a reimbursement gap if they charge more than $930 for a 2BR unit. Conversely, if the market rent is lower than $930, landlords will see a surplus. Since the local market rent is not available, landlords must rely on the SAFMR as a benchmark for setting their rental rates. They should aim to keep their rent close to this figure to avoid leaving money on the table or facing challenges in collecting the full rent from voucher holders.
To summarize, for a 2BR unit in ZIP 28668, the typical reimbursement gap or surplus hinges on the actual market rent compared to the $930 SAFMR. Landlords should adjust their expectations accordingly and set their rents strategically to maximize their financial outcomes while complying with Section 8 regulations.
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.