Section 8 Fair Market Rent (FMR) for ZIP 62708 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 62708, located in Springfield County, Illinois, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1070 for fiscal year 2024. This figure is specifically tailored for this ZIP code, reflecting local rental conditions more accurately than broader county-wide averages.

To understand what a voucher actually pays, consider the SAFMR of $1070. This amount is split between the landlord and the tenant. Typically, the tenant contributes 30% of their adjusted income towards rent, while the remainder is covered by the housing authority. However, if the tenant's portion plus any utility allowances exceeds the SAFMR, the housing authority will only reimburse up to the SAFMR limit.

Let's break down the payment process:

• Tenant Portion: The tenant pays 30% of their adjusted monthly income towards rent.
• Utility Allowances: Additional allowances for utilities are included in the calculation but do not increase the total reimbursement above the SAFMR.
• Housing Authority Reimbursement: The housing authority covers the difference between the tenant's contribution and the SAFMR, up to $1070 per month.

Given that the local market rent data is currently unavailable, it's important to note that landlords should compare the SAFMR of $1070 against their own market rates to determine profitability. If the market rent is higher than $1070, landlords will experience a reimbursement gap, meaning they receive less than they might from a market-rate tenant. Conversely, if the market rent is lower than $1070, landlords can expect a surplus, receiving more than the typical market rate.

In ZIP 62708, landlords accepting Section 8 vouchers should anticipate a reimbursement of up to $1070 for a two-bedroom unit. The actual reimbursement will depend on the tenant's income and utility needs, but it will never exceed the SAFMR limit. Therefore, the reimbursement gap or surplus will be determined by comparing the $1070 SAFMR to the prevailing market rents for similar units in the same area.

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.