Section 8 Fair Market Rent (FMR) for ZIP 58205 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To understand the economics of Section 8 housing in ZIP code 58205, it's crucial to know the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1390 for fiscal year 2024. This SAFMR specifically applies to this ZIP code, reflecting the localized rental costs.

The SAFMR represents the maximum amount that a Section 8 Housing Choice Voucher can pay towards rent. However, the actual reimbursement to landlords depends on the tenant's portion of the rent and utility allowances. Here’s a breakdown:

• Tenant Portion: Tenants typically contribute 30% of their adjusted income towards rent. For example, if a tenant's adjusted income is $1000 per month, they would contribute $300.
• Voucher Payment: The voucher will cover the difference between the tenant's contribution and the SAFMR. Using the same example, the voucher would pay $1090 ($1390 - $300).
• Utility Allowances: Utility allowances vary but generally provide an additional monthly stipend for utilities. These allowances do not directly affect the rent reimbursement but can be an important consideration for tenants.

In ZIP 58205, the local market rent data is currently unavailable. This makes it challenging to compare the SAFMR to the actual market rates, which could otherwise indicate whether the voucher reimbursement is above or below the average rent for the area. Despite this lack of data, the SAFMR provides a benchmark for rental pricing in the context of Section 8.

The reimbursement gap or surplus for a typical two-bedroom unit in ZIP 58205 is determined by the difference between the SAFMR and the actual market rent. Since the market rent is not available, we cannot calculate the exact gap or surplus. However, if the local market rent were lower than $1390, landlords would receive the full SAFMR amount, potentially leading to a surplus. Conversely, if the market rent exceeds $1390, landlords might face a gap between the voucher payment and the desired rent level.

Landlords should be aware that the SAFMR is subject to change annually based on HUD assessments of local rental markets. Therefore, keeping an eye on future updates to the SAFMR for ZIP 58205 is essential for financial planning.

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.