Section 8 Fair Market Rent (FMR) for ZIP 42460 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 42460 are governed by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment in FY 2026, the SAFMR is $910. This figure is crucial for understanding how much a landlord can expect to receive from the housing authority when a tenant uses a Section 8 voucher.

A Section 8 voucher typically covers a portion of the rent, but it's important to note that the total rent cannot exceed the SAFMR. If the local market rent is higher than $910, the voucher will only cover up to $910. Conversely, if the local market rent is lower, the voucher payment will adjust accordingly. However, since the local market rent data is currently unavailable, we'll focus on how the SAFMR interacts with the voucher system.

The voucher payment consists of two parts: the tenant's contribution and the government subsidy. The tenant's portion is generally 30% of their adjusted income, while the rest is covered by the government. Utility allowances are also factored into the total payment but are separate from the base rent amount. These allowances vary based on the number of bedrooms and other factors, but they do not affect the base rent calculation.

To illustrate, let's assume a tenant's contribution is $273 (30% of an income level that would be common in this scenario). In this case, the government would pay the difference between the tenant's contribution and the SAFMR, which is $637. Therefore, the total reimbursement to the landlord would be $910, with the tenant paying $273 and the government covering $637.

The typical reimbursement gap or surplus in ZIP 42460 depends on whether the local market rent is above or below the SAFMR. Since the local market rent is listed as N/A, we can't definitively state the gap or surplus. However, if the local market rent were to equal the SAFMR, there would be no gap or surplus; the landlord would receive exactly $910 per month. If the local market rent were higher, the landlord would face a gap where the voucher doesn't cover the full market rent. If it were lower, the landlord might receive more than the local market rent due to the SAFMR setting a higher baseline.

In conclusion, for a two-bedroom apartment in ZIP 42460, the SAFMR of $910 sets the maximum allowable rent for Section 8 vouchers. Landlords should ensure that their rents are competitive yet within this limit to avoid losing potential tenants who rely on vouchers. The actual reimbursement will depend on the tenant's contribution and the local market conditions, which are currently unknown.

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.