Section 8 Fair Market Rent (FMR) for ZIP 77279 - 2027

FY 2027 Fair Market Rent Rates

To understand how Section 8 economics work in ZIP code 77279, it's crucial to recognize the role of the SAFMR (Small Area Fair Market Rent) which is specifically set for this ZIP code. For a two-bedroom apartment in ZIP 77279 during fiscal year 2024, the SAFMR is $1330. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards the rent.

The SAFMR does not account for the entire rental cost; rather, it covers a portion of the total rent based on the voucher holder's income. Typically, the tenant is responsible for paying 30% of their adjusted monthly income toward rent. The remainder, up to the SAFMR, is paid by the program. For instance, if a tenant's income is $1000 per month, they would pay $300 ($1000 * 30%) toward rent. The voucher program would then cover the difference up to the SAFMR limit of $1330.

In addition to the base rent, there are utility allowances. These vary but generally provide an additional payment for utilities such as electricity, water, and gas. For ZIP 77279, the utility allowance adds to the overall reimbursement but does not change the SAFMR cap. If the utility allowance is $150, and the tenant's share remains at $300, the total reimbursement could be $1480 under ideal circumstances where the tenant's share plus the utility allowance equals the SAFMR cap.

Given the SAFMR of $1330 for a two-bedroom unit, landlords should expect to receive this amount or less, depending on the tenant's income. The local market rent is currently unavailable, making it difficult to compare the SAFMR directly to market rates. However, landlords can use the SAFMR as a benchmark for setting rents that are likely to attract voucher holders.

The reimbursement gap or surplus is the difference between the SAFMR and the actual market rent. In ZIP 77279, since the market rent is not specified, we cannot calculate a precise surplus or shortfall. However, if the market rent were higher than $1330, landlords would face a shortfall, requiring them to either lower their rent or find other sources of revenue to make up the difference. Conversely, if the market rent is below $1330, landlords would have a surplus, meaning they receive more than the standard market rate for similar units.

Landlords participating in Section 8 should carefully consider these economic factors when setting rents for their properties in ZIP 77279. They must ensure that the total rent and utilities do not exceed the SAFMR to remain eligible for the program.

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.