Section 8 Fair Market Rent (FMR) for ZIP 77383 - 2027

FY 2027 Fair Market Rent Rates

To understand the economics of Section 8 in ZIP code 77383, it's essential to break down the components involved. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1330 for the fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent.

The tenant is responsible for paying a portion of their income towards rent. Typically, this is 30% of their adjusted monthly income. For example, if a tenant has an adjusted monthly income of $1000, they would pay $300 towards rent. The remainder, up to the SAFMR limit, is covered by the voucher program. In our example, the voucher would cover the remaining $1030 of the $1330 rent.

In addition to covering part of the rent, the voucher also includes utility allowances. These allowances vary based on the size of the unit and other factors but are designed to help cover the cost of utilities such as electricity, water, and gas. For a two-bedroom apartment, the utility allowance might be around $200 per month, though this can fluctuate. This allowance is paid directly to the landlord and is separate from the rent reimbursement.

Therefore, the total amount a landlord could receive from a Section 8 voucher for a two-bedroom apartment in ZIP 77383 would be the sum of the rent reimbursement and the utility allowance. Using our example, this would be $1030 (rent reimbursement) + $200 (utility allowance) = $1230 per month. However, the exact amount depends on the tenant's income and the specific utility allowance determined by the local housing authority.

Given that the local market rent is currently not available, it's important to compare the SAFMR to the broader market trends. If the market rent exceeds $1330, landlords will face a reimbursement gap, meaning they won't receive the full market rent from the voucher program. Conversely, if the market rent is below $1330, landlords might see a surplus where the voucher covers more than the going market rate.

In ZIP 77383, the typical reimbursement gap or surplus for a two-bedroom voucher would be the difference between the SAFMR of $1330 and the actual market rent. Without specific market rent data, landlords should monitor local rental trends to determine whether they will receive more or less than the market rate when renting to a Section 8 participant. This gap or surplus can significantly impact the financial decision-making process for landlords considering participation in the Section 8 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.