Section 8 Fair Market Rent (FMR) for ZIP 72829 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 72829 are straightforward. The SAFMR (Standard Amount Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $880. This figure represents the maximum amount that the federal government will pay toward the rent for such a unit under the Section 8 program.

To understand what this means for landlords, it's essential to break down the components of the voucher payment. The voucher payment consists of two parts: the tenant's contribution and the government subsidy. The tenant is expected to pay 30% of their adjusted income toward the rent, which covers both the housing and utilities. For example, if a tenant's adjusted income is $1,000 per month, they would contribute $300 toward the rent. The remaining balance, up to the $880 limit, is covered by the government.

In ZIP 72829, the local market rent data is not available, which means we cannot compare the SAFMR directly to the average market rates. However, the SAFMR is the benchmark for determining the maximum subsidy a landlord can receive for a two-bedroom unit.

The voucher system also includes utility allowances. These allowances vary but typically cover a portion of the tenant's electricity, gas, water, and sewer costs. If the total rent plus utilities exceeds the $880 limit, the landlord must absorb the difference. Conversely, if the rent plus utilities is less than $880, the landlord receives the full amount.

Let's illustrate with an example. Assume the total rent and utilities for a two-bedroom apartment are $1,000. If the tenant contributes $300, the government will pay $580, leaving a gap of $120 for the landlord to cover. On the other hand, if the total rent and utilities are $700, the landlord will be reimbursed the full $700, with no surplus or deficit.

The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 72829 depends on the actual rent charged and the tenant's contribution. Given the SAFMR of $880, landlords should set their rents carefully to ensure they are not left with a significant gap between the voucher payment and their actual costs. If the local market rent were known, it could provide a clearer picture of whether landlords would generally see a surplus or face a gap.

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.