Section 8 Fair Market Rent (FMR) for ZIP 70139 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 70139 are defined by the SAFMR (Small Area Fair Market Rent) rates established by HUD (Housing and Urban Development). For a two-bedroom apartment in this specific ZIP code, the SAFMR for fiscal year 2024 is set at $1390 per month. This figure represents the maximum amount that the federal government will reimburse landlords for renting to tenants who are part of the Section 8 program.

To understand how this works, consider the components of a Section 8 voucher payment. First, there's the tenant portion, which is typically 30% of their adjusted income. If a tenant's adjusted monthly income is $1000, they would pay $300 towards rent. Second, there are utility allowances, which vary based on the size of the unit and the region. In ZIP 70139, these allowances might be included in the reimbursement structure but do not exceed the total SAFMR cap of $1390.

The reimbursement process involves HUD paying the difference between the tenant's contribution and the SAFMR. In our example, if the tenant pays $300, HUD would cover the remaining $1090 to meet the $1390 SAFMR. However, it's important to note that the actual reimbursement can be less if the market rent for the property is lower than the SAFMR. Landlords should aim to set their rents close to the SAFMR to maximize their income while still attracting Section 8 tenants.

Given that the local market rent data is currently unavailable, it's critical for landlords to monitor trends closely. If the market rent falls below the SAFMR, landlords will receive the full market rent plus any utility allowances, up to the SAFMR limit. Conversely, if the market rent exceeds the SAFMR, landlords must accept the SAFMR as the upper limit for reimbursement.

In ZIP 70139, landlords participating in the Section 8 program for a two-bedroom apartment will generally see a reimbursement gap if the local market rent is higher than $1390. For instance, if the market rent is $1600, landlords would only receive $1390, creating a $210 shortfall per month. On the other hand, if the market rent is $1200, landlords would receive the full $1200 plus utility allowances, potentially resulting in a surplus if those allowances push the total above the market rent.

In summary, for a two-bedroom apartment in ZIP 70139, landlords should expect the typical voucher reimbursement to be $1390 per month, with the actual amount depending on the tenant's contribution and local market conditions. The reimbursement gap or surplus will be determined by comparing the SAFMR to the local market rent.

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.