Section 8 Fair Market Rent (FMR) for ZIP 32899 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 32899 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1430 for fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent of a two-bedroom unit in this area.

Local market rents for a two-bedroom unit in ZIP 32899 are currently unavailable, which means that landlords must rely on the SAFMR to gauge the potential rental income. However, it's important to understand that the actual reimbursement to landlords from the Section 8 program is calculated based on the tenant's portion of the rent plus the utility allowances.

The tenant is generally responsible for paying 30% of their adjusted monthly income towards rent. The remaining amount up to the SAFMR of $1430 is then paid by the government. For example, if a tenant has an adjusted monthly income of $1000, they would pay $300 towards the rent, and the government would cover the rest up to $1430.

In addition to the base rent, there are utility allowances that can vary depending on the household size and the type of utilities used. These allowances are designed to help cover the cost of electricity, gas, water, and other utilities. If a tenant uses utilities included in the allowance, the total reimbursement to the landlord could be slightly higher than the SAFMR.

To illustrate, let's assume a standard utility allowance for a two-bedroom unit is around $200. If the tenant's share is $300, the landlord would receive a total of $1630 ($1430 + $200) per month from the Section 8 program. However, this amount is capped at the SAFMR of $1430, meaning the landlord would still only receive $1430 for rent, but the tenant might have additional funds to cover utilities.

The reimbursement gap or surplus is determined by comparing the SAFMR to the actual market rent. Since the local market rent for ZIP 32899 is not available, landlords should expect that if the market rent exceeds $1430, there will be a gap between what the government pays and what the landlord charges. Conversely, if the market rent is below $1430, the landlord may receive the full SAFMR, leading to a surplus.

In conclusion, landlords in ZIP 32899 should anticipate a reimbursement of $1430 for a two-bedroom unit under the Section 8 program. Without specific local market rent data, it's difficult to quantify the exact reimbursement gap or surplus, but it's clear that the economic dynamics of Section 8 are tied closely to the SAFMR established for this particular ZIP code.

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.