Location: Shelby County, TX | Metro: Rusk County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 75975 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP is $910 per month for fiscal year 2024. This figure represents the maximum amount that the government will pay to cover the rental subsidy for a unit of this size.
In contrast, the local market rent for a two-bedroom apartment, based on Census ACS data, averages $649 per month. This indicates that the SAFMR is higher than the typical market rent, which can be advantageous for landlords participating in the program.
A Section 8 voucher works by splitting the rent between the tenant and the government. Tenants are generally required to contribute 30% of their adjusted income towards rent. For simplicity, let's assume a tenant's contribution is $200 per month, which is less than the average but serves to illustrate the calculation. The government then covers the remaining portion up to the SAFMR limit.
In ZIP 75975, if the market rent is $649, the government would reimburse the landlord the difference between the tenant's contribution and the market rent, capped at the SAFMR. In this scenario, the landlord receives $200 from the tenant plus $410 from the government, totaling $610. However, since the market rent is $649, the landlord would still receive the full market rent of $649, with the government covering the remaining $449 ($649 - $200).
Utility allowances also play a role in the reimbursement. These allowances vary but typically add an additional $200 to $300 to the total reimbursement. Assuming a utility allowance of $250, the landlord would receive a total of $899 ($649 + $250), which is just below the SAFMR of $910.
The typical reimbursement gap or surplus in ZIP 75975 for a two-bedroom apartment is a surplus of $11 ($910 - $899). This means landlords can expect to be reimbursed slightly above the market rent, providing a small buffer that can help offset potential maintenance costs or vacancies.
To summarize, landlords in ZIP 75975 who participate in the Section 8 program for a two-bedroom apartment can expect to receive a total of $899 per month, including both rent and utility allowances. Given the SAFMR of $910, there is a surplus of $11, making it a financially viable option for those willing to comply with the program's regulations.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
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.