Section 8 Fair Market Rent (FMR) for ZIP 33743 - 2027

FY 2027 Fair Market Rent Rates

To understand the economics of Section 8 in ZIP code 33743, it's crucial to know the specifics of the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market. For a two-bedroom apartment in ZIP 33743, the SAFMR for fiscal year 2024 is set at $1850. This figure is significant because it represents the maximum amount that the housing authority will pay on behalf of a tenant receiving Section 8 assistance.

The SAFMR is tailored specifically to this ZIP code, reflecting the unique cost of living here. It's important to note that the local market rent is currently unavailable, which makes direct comparisons challenging. However, landlords can still rely on the SAFMR as a benchmark for what they can expect to be reimbursed under the program.

A voucher payment consists of two parts: the tenant's contribution and the housing authority's subsidy. The tenant must contribute 30% of their adjusted income toward the rent. If we assume an average adjusted income for a tenant in ZIP 33743, the tenant might pay around $555, which is 30% of $1850. This leaves the housing authority responsible for the remaining balance up to the $1850 limit.

In addition to the base rent, there are utility allowances that vary based on the size of the unit. For a two-bedroom apartment, the utility allowance is typically around $300 per month. This allowance is also included in the SAFMR calculation, meaning the total reimbursement a landlord can receive is the sum of the base rent and utilities, capped at $1850.

If the actual market rent for a two-bedroom apartment exceeds $1850, the landlord would have to absorb the difference between the market rent and the SAFMR. Conversely, if the market rent is below $1850, the landlord receives the full market rent plus any additional utility allowance, without exceeding the SAFMR cap.

In ZIP 33743, the typical reimbursement gap or surplus depends on the actual market rent. Given that the local market rent is not specified, landlords should compare their own rents to the $1850 SAFMR to determine whether they will face a shortfall or enjoy a surplus. For instance, if a landlord charges $2000 for a two-bedroom apartment, they would lose $150 per month due to the SAFMR cap. On the other hand, if the rent is $1600, the landlord would receive the full $1600 plus the $300 utility allowance, totaling $1900, which is above the SAFMR but within the allowed limits.

To conclude, landlords in ZIP 33743 should be aware that the SAFMR of $1850 sets a clear ceiling on what they can expect from the Section 8 program. They need to factor in the tenant's contribution and utility allowances when setting their rents to avoid financial gaps or unnecessary surpluses.

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.