Section 8 Fair Market Rent (FMR) for ZIP 53512 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 53512, located in Janesville-Beloit County, Wisconsin, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is set at $1110. This figure represents the maximum amount that the housing authority will pay towards the rent for a unit of this size in this particular ZIP code.

A voucher under Section 8 is designed to cover the difference between what a tenant can afford and the rent of the dwelling. Tenants are typically required to contribute 30% of their adjusted income toward the rent. If a tenant's income is below a certain threshold, they may receive additional assistance for utilities. The utility allowance varies based on the location and the type of dwelling but is generally calculated to help cover the cost of electricity, gas, water, and sewerage.

To illustrate, if a tenant's adjusted income is $1000 per month, they would be expected to contribute $300 towards the rent. The remaining $810 would be covered by the Section 8 program, up to the SAFMR limit of $1110. In this scenario, the total rent collected by the landlord would be $1110, which includes the tenant's contribution and the subsidy payment.

The SAFMR rate being set at $1110 means that it is specific to this ZIP code and reflects the rental market conditions here. Landlords should note that if the market rent for a two-bedroom apartment exceeds $1110, they will have to absorb the difference as the housing authority will not exceed the SAFMR in their payments. Conversely, if the market rent is below $1110, landlords can expect the full SAFMR to be paid out, covering any shortfall.

In ZIP 53512, given the SAFMR of $1110 for a two-bedroom apartment, landlords can expect to receive this amount from the housing authority plus the tenant's portion, which totals $1110. However, since the local market rent data is currently unavailable, it's important to conduct a thorough analysis of the surrounding rental market to determine if there is a surplus or a gap. If the market rent is higher than $1110, landlords will face a gap; if lower, they may see a surplus.

For landlords operating in ZIP 53512, understanding these dynamics is crucial for financial planning and ensuring compliance with the Section 8 program requirements. Always consult the latest HUD guidelines for precise calculations and updates regarding the SAFMR and tenant contributions.

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.