Section 8 Fair Market Rent (FMR) for ZIP 29502 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 29502, located in Florence County, South Carolina, are defined by the SAFMR (Small Area Fair Market Rent) rates set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is $1010. This rate is crucial because it determines the maximum amount a landlord can charge a Section 8 tenant.

To understand the actual payment a landlord receives, we need to break down the components of a Section 8 voucher. The voucher covers the difference between the tenant's portion and the SAFMR. Typically, tenants contribute approximately 30% of their income towards rent. However, the exact figure depends on the tenant's income level. Let’s assume a tenant contributes 30% of an income that is at the poverty line for a household size of four, which is about $26,200 annually or roughly $727 monthly. In this scenario, the tenant would pay around $218 towards rent, leaving the remainder to be covered by the voucher.

The voucher payment for a two-bedroom apartment in ZIP 29502 would thus be calculated as follows: $1010 - $218 = $792. This is the amount the landlord would receive from the government to make up the difference. It’s important to note that this calculation does not include utility allowances, which are additional payments made directly to the landlord to cover electricity, water, and other utilities. Utility allowances vary but typically add around $150-$200 per month to the total reimbursement.

Given these figures, the total reimbursement a landlord might expect could range from $942 to $992 per month. This amount is guaranteed by the government, ensuring a stable and predictable rental income. However, if the local market rent is higher than the SAFMR, landlords may face a reimbursement gap. Conversely, if the market rent is lower, they could see a surplus.

In ZIP 29502, since the local market rent data is currently unavailable, we cannot definitively state whether there is a surplus or a gap. Nonetheless, based on the SAFMR of $1010, landlords should ensure their rental properties are priced appropriately to avoid financial losses while still attracting tenants. They must also maintain their properties to meet the housing quality standards required by the Section 8 program.

For landlords operating in ZIP 29502, understanding the SAFMR and how it impacts the overall rental economics is essential. With a reimbursement of around $942 to $992 per month, landlords should assess their costs and determine if this rate provides sufficient profit margins or requires adjustments in property management strategies.

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.