Location: Auburn-Opelika, AL | Metro: Auburn-Opelika, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
The economics of Section 8 in ZIP code 36803 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1100 per month for the fiscal year 2024. This rate is specifically tailored for this ZIP code, meaning it reflects the rental conditions unique to 36803.
While the local market rent is currently unavailable, the SAFMR provides a clear benchmark for landlords participating in the program. A voucher holder's rent contribution is based on their income, typically around 30% of their adjusted monthly income. For instance, if a tenant's income is $2000 per month, they would contribute approximately $600 towards rent, leaving the remaining $500 to be covered by the Section 8 program.
The Section 8 voucher also includes utility allowances, which can vary but are generally fixed by HUD (Housing and Urban Development) guidelines. In ZIP 36803, these allowances might cover a significant portion of the tenant's electricity, gas, water, and sewer costs. If the utility allowance is $150, then the total reimbursement to the landlord from the government would be $650 ($500 for rent and $150 for utilities).
This means that for a two-bedroom apartment, landlords will receive a guaranteed $650 from the government, plus the tenant's contribution of about $600, totaling $1250. However, since the SAFMR is $1100, there is a surplus of $150 above the SAFMR limit. Landlords must ensure that the total rent does not exceed the SAFMR plus any reasonable utility allowances, so in practice, the maximum reimbursement would remain at $1100.
In summary, for a two-bedroom unit in ZIP 36803, the typical reimbursement gap or surplus is a surplus of $50, considering the SAFMR of $1100 and the combined tenant and government contributions of $1150. This surplus is beneficial for landlords, providing a slightly higher income than the SAFMR alone. However, landlords should be aware that the overall rent cannot exceed the SAFMR plus utility allowances, ensuring compliance with federal guidelines.
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.