Section 8 Fair Market Rent (FMR) for ZIP 32411 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 32411, located in Panama City County, Florida, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1520. This figure represents the maximum amount that the housing authority will pay on behalf of eligible tenants. However, it's important to note that local market rents are currently not available, which makes direct comparisons challenging.

When a tenant receives a Section 8 voucher, they are responsible for paying a portion of their rent based on their income. Typically, this is 30% of their adjusted monthly income. For example, if a tenant has an adjusted monthly income of $1000, they would be required to pay $300 towards the rent. The housing authority then covers the remaining balance up to the SAFMR limit of $1520.

In addition to the base rent, there are utility allowances that can vary depending on the location and the type of utilities used. These allowances are designed to help cover the cost of electricity, gas, water, and other necessary services. In ZIP 32411, the utility allowance is not specified, but it's typically included in the overall reimbursement calculation.

To illustrate, let's assume a two-bedroom apartment is rented for $1600 per month, which is slightly above the SAFMR. If the tenant's portion is $300, the housing authority would reimburse the landlord $1220 ($1520 - $300), leaving a shortfall of $80 for the landlord. Conversely, if the market rent for a two-bedroom is lower, say $1400, and the tenant's portion remains at $300, the housing authority would still pay $1220, resulting in a surplus of $120 for the landlord.

The typical reimbursement gap or surplus in ZIP 32411 depends on the actual market rent compared to the SAFMR. With the SAFMR at $1520 and assuming the market rent is around the same or slightly higher, landlords can expect a slight shortfall or surplus when renting to tenants with Section 8 vouchers. This difference should be considered when setting rental rates to ensure financial stability and compliance with Section 8 guidelines.

Landlords must also understand that the SAFMR is a fixed rate for the ZIP code, meaning all units within ZIP 32411 are subject to the same maximum reimbursement rate regardless of specific location or amenities. Therefore, setting a rent above $1520 could result in the unit being deemed unaffordable under the program, unless the tenant can afford the additional amount.

In summary, landlords in ZIP 32411 should expect to receive a total of $1520 or less per month for a two-bedroom apartment from the housing authority, plus any applicable utility allowances. The remainder of the rent must be covered by the tenant, creating either a surplus or a gap for the landlord based on the actual market rent charged.

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.