Location: Laredo, TX | Metro: Laredo, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 78040 are defined by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP. For a two-bedroom apartment, the SAFMR for FY 2024 is $1020. However, the local market rent, according to Census ACS data, is lower at $895.
A landlord might wonder how much they will receive when a tenant uses a Section 8 voucher. The voucher system works by covering the difference between what the tenant can afford and the actual rent. Typically, the tenant's portion is 30% of their adjusted income, plus a standard utility allowance.
To illustrate, let's assume the tenant's portion is 30% of an adjusted income of $1500 per month. This would amount to $450. If the utility allowance is $150, then the total subsidy a landlord receives is calculated by subtracting these amounts from the SAFMR. Therefore, the reimbursement would be:
This means the landlord would receive $420 from the housing authority, plus the $450 from the tenant, totaling $870. Since the market rent is $895, there is a slight shortfall for landlords who charge the market rate. Specifically, the reimbursement gap for a two-bedroom apartment is $25 per month.
In summary, while the SAFMR for ZIP 78040 is higher than the local market rent, landlords must account for the tenant's contribution and utility allowances. The typical reimbursement for a two-bedroom unit leaves a small surplus for those charging below market rates, but a minor gap for those at or above market rates.
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.