Section 8 Fair Market Rent (FMR) for ZIP 32111 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 32111, located in Ocala County, Florida, operate based on specific financial metrics designed to ensure affordability for low-income tenants while providing landlords with predictable rental income. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1270. This figure is crucial as it defines the maximum amount that the Section 8 program will reimburse a landlord for a unit of this size.

The SAFMR is specifically tailored for this ZIP code, meaning it reflects the unique rental market conditions of 32111. While the local market rent is currently unavailable, understanding the SAFMR allows landlords to anticipate their potential income from a Section 8 tenant.

When a tenant receives a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically 30% of their adjusted income. The remaining amount is paid by the Housing Authority to the landlord. However, the total reimbursement cannot exceed the SAFMR of $1270 for a two-bedroom unit in ZIP 32111.

To illustrate, if a tenant's portion of the rent is $400, the Housing Authority would pay the difference up to the SAFMR limit. In this case, the landlord would receive a total of $1270, with the tenant contributing $400 and the Housing Authority covering the rest. If the tenant’s share were higher, say $600, the landlord would still only receive $1270 in total, with the tenant paying $600 and the Housing Authority paying $670.

In addition to the base rent, Section 8 vouchers also include utility allowances. These allowances vary but are intended to cover reasonable costs for utilities such as electricity, gas, water, and sewer. The utility allowance does not increase the overall SAFMR but is an additional payment made directly to the tenant to help cover these expenses.

Given the SAFMR of $1270 for a two-bedroom unit, landlords should expect a reimbursement gap if the market rent in ZIP 32111 exceeds this amount. Conversely, if the local market rent is below $1270, landlords might see a surplus. Without specific local market rent data, it's challenging to quantify the exact gap or surplus, but landlords can use the SAFMR as a benchmark to compare against their own rental rates and adjust accordingly.

Landlords must understand that the SAFMR sets a ceiling on the reimbursement, and any rent above this figure is not covered by the Section 8 program. Therefore, setting the rent at or slightly below $1270 ensures full reimbursement without leaving a significant gap.

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.