Section 8 Fair Market Rent (FMR) for ZIP 72820 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 72820, located in Franklin County, Arkansas, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $810. This figure represents the maximum amount that the housing authority will pay to landlords on behalf of eligible tenants.

To understand what a landlord can expect from a voucher payment, it's essential to break down the components. The total rent for a two-bedroom unit is split into two parts: the tenant's portion and the housing authority's contribution. The tenant is typically responsible for paying 30% of their adjusted income towards rent. For example, if a tenant's monthly income is $1,620, they would owe $486 (30% of $1,620) towards the rent. The remaining balance, up to the SAFMR limit, is covered by the housing authority.

In addition to the base rent, there are utility allowances. These vary based on the type of utilities required and the number of bedrooms in the unit. For a two-bedroom apartment, the utility allowance can range from $150 to $300 per month, depending on the specific situation. This allowance is also part of the overall reimbursement package provided by the housing authority.

Let's consider a scenario where the tenant's portion is $486, and the utility allowance is $225. In this case, the housing authority would cover the difference between the tenant's payment and the SAFMR. So, the housing authority would contribute $810 - $486 = $324 towards the rent. Adding the utility allowance, the total reimbursement to the landlord would be $324 (rent) + $225 (utilities) = $549 per month.

This means that in ZIP 72820, landlords participating in the Section 8 program for a two-bedroom unit will receive a reimbursement of up to $810 for rent, plus any applicable utility allowances. However, given that the local market rent is not available, it's challenging to determine whether this reimbursement will result in a surplus or a gap compared to the market rates. If the market rent is higher than the SAFMR, landlords will experience a shortfall. Conversely, if the market rent is lower, landlords might see a surplus.

To conclude, the typical reimbursement for a two-bedroom unit under a Section 8 voucher in ZIP 72820 is $810 for rent, plus utility allowances. Without specific local market rent data, it's impossible to quantify the exact reimbursement gap or surplus, but landlords should compare this amount against their own rental costs to assess profitability.

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.