Section 8 Fair Market Rent (FMR) for ZIP 65728 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 65728 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $980 for the fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent of a two-bedroom unit in this area.

To understand what a landlord can expect from a voucher, consider the components of the payment. A tenant typically pays 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,633 (the median household income for ZIP 65728), the tenant's portion would be approximately $490 per month. This leaves the voucher program to cover the remaining balance up to the SAFMR of $980.

In addition to the base rent, the voucher also includes utility allowances. These allowances vary but generally provide around $200-$300 per month to help cover electricity, gas, water, and other utilities. For simplicity, let’s use an average utility allowance of $250 per month. Therefore, the total monthly reimbursement a landlord might receive from a voucher is the tenant's contribution plus the utility allowance, which sums up to about $740.

This means there is a potential reimbursement gap of $240 between the total SAFMR ($980) and the actual reimbursement received by the landlord ($740). Landlords should note that while the SAFMR sets the maximum limit, the actual reimbursement depends on the tenant's income and utility costs, so this gap could be smaller or larger. However, it is important to ensure that the rent charged does not exceed the SAFMR to remain eligible for the voucher program.

Given the lack of specific data on local market rents, it is crucial for landlords to research the current rental rates in ZIP 65728 to determine if the SAFMR aligns with the market. If the market rent is below the SAFMR, landlords may find themselves with a surplus where the voucher covers more than the market rate, potentially attracting more tenants. Conversely, if the market rent exceeds the SAFMR, landlords must decide whether to accept the lower reimbursement or seek non-voucher tenants willing to pay the higher market rate.

In summary, landlords in ZIP 65728 can expect a voucher to cover up to $980 of a two-bedroom apartment's rent, with the actual reimbursement being the sum of the tenant's 30% contribution and a utility allowance. This results in a typical reimbursement gap of $240, though this can vary based on individual circumstances.

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.