Section 8 Fair Market Rent (FMR) for ZIP 38473 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The economics of Section 8 in ZIP code 38473 operate under specific financial guidelines that landlords need to understand. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1,230 per month for FY 2026. However, the local market rent for a similar unit is lower, at $950 per month according to the Census ACS data.

A Section 8 voucher does not cover the entire rent amount. Instead, it compensates for the difference between the tenant's portion and the total rent. Here’s how it works:

• The tenant is required to pay 30% of their adjusted income towards rent.
• The government then pays the remaining balance up to the SAFMR limit.
• Tenant utility allowances are also factored into the reimbursement, but these do not exceed the SAFMR cap.

In ZIP 38473, if the market rent is below the SAFMR, the landlord receives the full market rent plus any utility allowance. If the market rent exceeds the SAFMR, the landlord only receives the SAFMR amount plus any applicable utility allowance.

To illustrate, let’s assume a tenant’s adjusted income is $1,000 per month. Their portion would be 30% of $1,000, which equals $300. If the local market rent is $950, the government will cover the difference between the tenant’s payment and the market rent, which is $650. Therefore, the landlord receives $950 ($300 from the tenant and $650 from the government).

If the local market rent were higher, say $1,300, the government would still only reimburse up to the SAFMR of $1,230. In this case, the landlord would receive $1,230 ($300 from the tenant and $930 from the government), leaving a shortfall of $70 for the landlord.

In ZIP 38473, given the local market rent of $950, the landlord would have a surplus of $280 per month over the local market rate, assuming the government reimburses up to the SAFMR. This surplus comes from the government paying the difference between the local market rent and the SAFMR, plus the tenant’s portion of the rent.

Landlords should note that the SAFMR is specific to this ZIP code, meaning it does not necessarily reflect the rates in other areas of the county or metropolitan region. It is crucial to keep track of these figures as they directly impact the financial viability of renting to Section 8 tenants.

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.