Location: Fayette County, AL | Metro: Fayette County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
In ZIP code 35542, the economics of Section 8 housing are straightforward. The Standard Area Fair Market Rent (SAFMR) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $800. This figure represents the maximum amount that a landlord can charge a tenant who is using a Section 8 housing voucher for a two-bedroom unit.
The SAFMR is the benchmark used by the Department of Housing and Urban Development (HUD) to determine the rental assistance payments. However, it's important to note that the local market rent is currently unavailable, which might indicate that the rental market in ZIP 35542 is either underreported or has limited data available. This lack of information makes it challenging to compare the SAFMR with actual market rents, but it doesn't affect the calculation of voucher payments.
A Section 8 voucher pays the difference between the tenant's portion of the rent and the total rent charged, up to the SAFMR limit. Tenants are typically required to pay 30% of their adjusted income toward rent. For instance, if a tenant's adjusted income is $1,000 per month, they would contribute $300 toward the rent. The voucher would then cover the remaining $500, bringing the total payment to $800, the SAFMR for a two-bedroom apartment in ZIP 35542.
Utility allowances are also factored into the overall payment structure. These allowances vary but generally cover a portion of the tenant's electricity, gas, water, and sewer costs. Landlords should be aware that these utilities are often included in the tenant's portion of the rent, reducing the direct impact on the landlord's reimbursement.
Given the SAFMR of $800 and assuming the tenant contributes 30% of their income, the typical reimbursement gap for a two-bedroom apartment in ZIP 35542 is $500. This means landlords receive $500 less than the SAFMR for the unit when a tenant uses a Section 8 voucher, unless the tenant's portion of the rent plus the utility allowance equals or exceeds the SAFMR. In most cases, landlords will have to adjust their expectations and manage their properties accordingly to remain within the economic parameters set by Section 8.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
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.