Section 8 Fair Market Rent (FMR) for ZIP 28687 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 28687, located in Iredell County, North Carolina, are defined by the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1210. This figure represents the maximum amount that the housing authority will pay towards the rent subsidy for a unit of this size.

A voucher payment under Section 8 is structured to cover a significant portion of the rent, but not all of it. The landlord receives a reimbursement from the housing authority, while the tenant is responsible for paying the difference between the SAFMR and the actual market rent, if any. In ZIP 28687, the local market rent data is currently unavailable, which makes direct comparisons challenging. However, understanding the components of the voucher payment can still provide valuable insight into the financial dynamics at play.

The voucher payment consists of the housing authority's contribution and the tenant's portion. Typically, the tenant must contribute 30% of their adjusted income towards the rent. If the total rent exceeds the SAFMR, the tenant must also pay any additional amount above the voucher limit. Utility allowances are separate and do not affect the rent reimbursement directly. They are meant to help cover the cost of utilities and are paid directly to the tenant.

To illustrate, let’s assume a tenant has an adjusted income that requires them to pay $363 towards the rent (this would be 30% of an income that calculates to $1210 when divided by 0.3). Therefore, the housing authority would reimburse the landlord the remaining $847 ($1210 - $363) for a two-bedroom unit. If the market rent for a similar unit is higher than $1210, the landlord would need to negotiate a lower rent with the tenant or find other ways to increase occupancy rates, such as offering amenities or services that justify a higher rental price within the market context.

In ZIP 28687, without specific local market rent data, we cannot determine the exact reimbursement gap or surplus. However, if the local market rent were below $1210, the landlord would receive the full market rent plus the tenant’s contribution, resulting in a surplus. Conversely, if the market rent exceeds $1210, the landlord would face a gap between the voucher reimbursement and the desired market rent, requiring the tenant to cover the excess or the landlord to adjust the rent accordingly.

Summary: The SAFMR of $1210 for a two-bedroom apartment in ZIP 28687 sets the maximum subsidy level. Landlords should consider the tenant’s 30% contribution and the potential reimbursement gap or surplus based on the local market conditions. To maximize profits, landlords might need to align their rental pricing with the SAFMR or offer value-added services to attract tenants willing to cover the excess costs.

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.