Section 8 Fair Market Rent (FMR) for ZIP 32727 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 32727, located in Orlando-Kissimmee-Sanford County, Florida, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1640 for fiscal year 2024. This SAFMR specifically applies to this ZIP code, meaning it is tailored to the rental market conditions here.

To understand what a voucher actually pays, consider the components involved. The total rent is split between the tenant's contribution and the government subsidy. Typically, the tenant pays 30% of their adjusted income towards rent, while the government covers the remainder up to the SAFMR limit. Utility allowances are also included but vary based on the size of the unit and regional costs.

In ZIP 32727, if a landlord rents out a two-bedroom apartment for $1640, the government will reimburse the difference between the tenant's 30% payment and the SAFMR rate. For instance, if the tenant's 30% contribution is $500, then the government would pay the remaining $1140, assuming no other adjustments are needed. Utility allowances can add an additional $200 to $300 per month, depending on the specifics of the voucher and the local cost of utilities.

The reimbursement gap or surplus depends on the actual market rent compared to the SAFMR. Since the local market rent data is currently unavailable, we can infer that if the market rent is higher than $1640, there will be a reimbursement gap. Landlords would need to cover the difference between the SAFMR and the market rent. Conversely, if the market rent is lower than $1640, landlords might see a surplus where the voucher amount exceeds the tenant's portion and the actual rent.

Given the SAFMR of $1640, landlords should ensure that their two-bedroom units do not exceed this rent ceiling to avoid a reimbursement gap. If the local market rent were known and was below $1640, landlords could potentially benefit from a surplus when renting to tenants with vouchers.

Landlords participating in Section 8 for a two-bedroom apartment in ZIP 32727 can expect a reimbursement that matches the SAFMR of $1640, with any utility allowances added to the total. However, without specific market rent data, it is unclear whether this will result in a surplus or a gap. To maximize benefits and minimize risks, landlords should monitor local rental trends closely.

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.