Section 8 Fair Market Rent (FMR) for ZIP 78001 - 2027

FY 2027 Fair Market Rent Rates

To understand the economics of Section 8 housing in ZIP code 78001, it's essential to look at the specific financial mechanisms involved. For fiscal year 2026, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1,020. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards the rent of a two-bedroom unit.

The SAFMR is specifically tailored to reflect the rental costs in ZIP 78001, ensuring that the payment standard closely matches the local rental market conditions. However, the local market rent data is currently unavailable, which makes direct comparisons challenging. Despite this, we can still outline the economic implications for landlords.

A Section 8 voucher holder is typically responsible for paying 30% of their adjusted income towards rent. The remaining amount is covered by the government voucher, up to the SAFMR limit. Additionally, there are utility allowances that vary but generally do not exceed the rent component. These allowances are meant to cover some of the tenant's utility expenses.

To illustrate, if a tenant has an adjusted monthly income of $1,500, they would be expected to contribute $450 (30%) towards rent. If the total rent for the property is $1,020, the government would cover the difference, which is $570 in this case. The actual reimbursement to the landlord thus depends on the tenant's income and the total rent agreed upon, with the government's contribution capped at $1,020 per month for a two-bedroom unit.

If the rent for a two-bedroom apartment exceeds $1,020, the landlord will face a reimbursement gap. Conversely, if the rent is below $1,020, the landlord may receive a surplus. Given the SAFMR of $1,020, landlords should price their units carefully to ensure they maximize their income while remaining competitive in the local market.

In ZIP 78001, landlords can expect the typical reimbursement gap for a two-bedroom unit to be the difference between the market rent and the SAFMR of $1,020. Without specific market rent data, it's impossible to quantify this gap precisely. However, landlords should be aware that setting rents above the SAFMR will result in a gap that must be covered by the tenant, potentially reducing the pool of eligible voucher holders.

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.