Section 8 Fair Market Rent (FMR) for ZIP 32739 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 32739, which includes parts of Deltona, Daytona Beach, and Ormond Beach in Florida, hinge on understanding the SAFMR (Small Area Fair Market Rent) and how it interacts with tenant contributions and utility allowances.

The SAFMR for a two-bedroom apartment in ZIP 32739 for fiscal year 2024 is set at $1410. This figure is specific to this ZIP code, meaning landlords must align their rental prices with this SAFMR to participate in the program effectively. However, without a local market rent figure provided, we can only work with the SAFMR to illustrate the economic dynamics.

In the Section 8 program, tenants typically pay 30% of their adjusted income toward rent. For simplicity, let's assume an average adjusted income of $1800 per month for a tenant in this area. Thirty percent of $1800 amounts to $540, which is the portion the tenant would pay towards the rent.

The remaining amount, up to the SAFMR, is covered by the housing authority. In our example, if the tenant pays $540, then the housing authority would reimburse the landlord $870 to meet the $1410 SAFMR. Additionally, there are utility allowances that vary but can add up to $300 or more depending on the specifics of the lease and the tenant's needs. These allowances can be paid directly to the landlord or to the tenant.

If the landlord charges exactly $1410 for a two-bedroom unit, they will receive the full SAFMR from the combination of tenant payment and housing authority reimbursement, assuming the tenant qualifies for the maximum utility allowance. However, if the landlord charges more than $1410, the excess amount is the responsibility of the tenant, who must find additional funds to cover the higher rent.

To summarize, a landlord in ZIP 32739 participating in Section 8 for a two-bedroom apartment should expect a reimbursement close to the $1410 SAFMR, with the exact amount depending on the tenant's income and any applicable utility allowances. If the market rent exceeds the SAFMR, the landlord will face a reimbursement gap, where the tenant must pay the difference out-of-pocket. Conversely, if the market rent is lower than the SAFMR, landlords might see a surplus, receiving more than the standard market rate.

In ZIP 32739, given the lack of specific local market rent data, the typical scenario is a reimbursement gap if market rents are below $1410, or a surplus if they exceed this amount. Landlords should carefully consider these factors when setting their rental rates for properties accepting Section 8 vouchers.

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.