Section 8 Fair Market Rent (FMR) for ZIP 75261 - 2027

FY 2027 Fair Market Rent Rates

In ZIP code 75261, the Section 8 program operates under the Single Area Fair Market Rent (SAFMR) system, where the fair market rent for a two-bedroom apartment is set at $1620 per month for fiscal year 2024. This SAFMR rate is specifically tailored for this ZIP code, reflecting the local housing market conditions. It's important to note that the local market rent is currently not available, which means we rely on the SAFMR as our benchmark for rental rates.

The Section 8 Housing Choice Voucher Program pays a subsidy to landlords on behalf of eligible low-income tenants. The amount paid is determined by subtracting the tenant's portion of the rent from the SAFMR. The tenant's portion is typically 30% of their adjusted monthly income. For example, if a tenant has an adjusted monthly income of $1500, they would be responsible for $450 ($1500 x 0.3), leaving the voucher program to cover the remaining $1170 of the $1620 SAFMR for a two-bedroom unit.

Additionally, the voucher program includes utility allowances. These allowances vary but generally cover a portion of the tenant's energy costs. In ZIP 75261, the utility allowance for a two-bedroom apartment is set at $150 per month. Therefore, the total reimbursement a landlord can expect from the voucher program for a two-bedroom unit would be $1320 ($1170 rent subsidy + $150 utility allowance).

This means that in ZIP 75261, landlords who accept Section 8 vouchers for a two-bedroom apartment will have a reimbursement gap of $300 per month. This gap represents the difference between the SAFMR and the total reimbursement from the voucher program. In other words, landlords will receive $300 less than the SAFMR for a two-bedroom apartment when a tenant uses a Section 8 voucher.

To summarize, the economics of Section 8 in ZIP 75261 are straightforward. Landlords receive a fixed reimbursement based on the SAFMR and utility allowances, with the tenant contributing 30% of their income towards rent. Given the SAFMR of $1620 and a utility allowance of $150, landlords should expect a reimbursement of $1320 for a two-bedroom unit, resulting in a $300 gap compared to the SAFMR. This economic model ensures that landlords are compensated for renting to low-income tenants while also providing affordable housing options.

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.