Section 8 Fair Market Rent (FMR) for ZIP 52220 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The economics of Section 8 housing in ZIP code 52220 are governed by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $940 per month for fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards a tenant's rent in this specific ZIP code. However, the local market rent for similar units is currently not available, which means landlords need to base their decisions on the SAFMR alone.

To understand what a voucher actually pays once the tenant portion and utility allowances are factored in, let's break down the components:

• Tenant Portion: Tenants typically contribute 30% of their adjusted income toward rent. For example, if a tenant has an adjusted income of $1,500 per month, they would contribute $450 ($1,500 * 0.3).
• Voucher Payment: The difference between the SAFMR and the tenant's contribution is covered by the voucher. In the case of our $1,500 income example, the voucher would pay $490 ($940 - $450).
• Utility Allowances: These are additional payments made directly to the landlord to cover utilities. Utility allowances vary but can be significant in reducing the financial burden on tenants.

Note that the SAFMR is specifically set for ZIP code 52220, meaning it does not apply uniformly across the entire metro or county area. This specificity can affect the attractiveness of the voucher program to landlords in areas where market rents exceed the SAFMR.

In ZIP 52220, landlords can expect a reimbursement gap or surplus depending on the actual market rent. Since the local market rent is not available, we can only compare against the SAFMR. If a landlord charges the full SAFMR of $940, they receive the maximum allowable payment from the voucher program. Any rent above this amount is not covered by the voucher, creating a potential reimbursement gap.

Given the SAFMR of $940 and assuming a tenant contributes $450 based on the example income, landlords would receive a total of $940 per month for a two-bedroom unit. If the market rent is higher than $940, landlords must decide whether to accept the lower guaranteed payment or risk renting to tenants who might not be able to make up the difference.

Without specific local market rent data, it's difficult to quantify the exact reimbursement gap or surplus. However, landlords should be aware that the SAFMR sets a cap on the voucher program's contribution, and any excess over this amount must be paid by the tenant. If the market rent is below $940, landlords can charge less and still receive the full SAFMR reimbursement, leading to a surplus.

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.