Section 8 Fair Market Rent (FMR) for ZIP 46857 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 46857, located in Fort Wayne, Indiana, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1090 per month for fiscal year 2024. This figure represents the maximum amount that a landlord can receive from the housing authority for a tenant participating in the Section 8 program.

To understand how this works, let's break down the components of the payment. The tenant is responsible for paying a portion of the rent, typically around 30% of their adjusted income. For example, if a tenant's monthly income is $1500, they would pay approximately $450 towards the rent. The remaining balance is then covered by the housing authority up to the SAFMR limit.

In addition to the base rent, there are utility allowances that must be considered. These allowances vary but generally cover electricity, gas, water, and sewer. For ZIP 46857, the utility allowance is included in the $1090 SAFMR cap, meaning the total reimbursement cannot exceed this amount even if utility costs are high.

Let's use an example to illustrate the reimbursement process. If a tenant pays $450 and the utility allowance is $100, the housing authority will cover the difference between these amounts and the SAFMR. In this case, the housing authority would pay $540, bringing the total reimbursement to $1090. This ensures that the landlord receives the full SAFMR amount without exceeding it.

However, it's important to note that the local market rent for two-bedroom apartments in ZIP 46857 is currently unknown due to lack of data. Therefore, it's difficult to determine whether the SAFMR aligns closely with the market rates or if there is a significant gap or surplus.

If we assume the market rent is higher than the SAFMR, landlords might face a reimbursement gap. For instance, if the market rent for a two-bedroom is $1200, the landlord would only receive $1090 from the Section 8 program, leaving a shortfall of $110 per month. Conversely, if the market rent is lower, say $900, the landlord would receive the full $900 plus any unused portion of the utility allowance, resulting in a surplus.

To conclude, the typical reimbursement scenario for a two-bedroom apartment in ZIP 46857 under the Section 8 program is a fixed amount of $1090 per month. Given the lack of specific local market rent data, the actual financial impact on landlords depends on the prevailing market rates. Landlords should be prepared for potential gaps or surpluses based on their property's rental price relative to the SAFMR.

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.