Location: Fayette County, TX | Metro: Fayette County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 in ZIP code 78963, it's crucial to start with the basics. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $1,090. This figure represents the maximum amount that a housing authority can pay on behalf of a Section 8 tenant for rent.
The SAFMR does not account for local market rents, which are currently unavailable for ZIP 78963. However, it's important to note that the SAFMR is a guideline and not always reflective of the actual market conditions. Landlords should be aware that they may have to adjust their expectations based on the actual rental rates in the area.
A Section 8 voucher works by covering the difference between what a low-income family can afford and the rent of the unit. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. For example, if a tenant has an adjusted income of $1,500 per month, they would pay approximately $450 toward the rent. The remainder, up to the SAFMR limit, is covered by the housing authority. In the case of ZIP 78963, if the total rent is $1,090, the housing authority would cover the difference between $450 and $1,090, which is $640.
Additionally, there are utility allowances that are factored into the total payment made by the housing authority. These allowances vary depending on the region and the type of utilities included. For ZIP 78963, these allowances might cover electricity, gas, water, and sewage. If the utility allowance is $200, the housing authority would pay $840 ($640 for rent + $200 for utilities), assuming the total rent is at the SAFMR limit.
The typical reimbursement gap or surplus in ZIP 78963 for a two-bedroom apartment can be calculated by comparing the SAFMR to the actual market rent. Since the market rent data is not available, we cannot provide an exact figure for the reimbursement gap or surplus. However, if the market rent exceeds $1,090, landlords will face a reimbursement gap, meaning they will receive less than the full market rent. Conversely, if the market rent is below $1,090, landlords will benefit from a surplus, receiving more than the tenant's market rent.
In conclusion, landlords in ZIP 78963 should be prepared to work within the SAFMR of $1,090 for a two-bedroom apartment. They must also consider the tenant's contribution and any utility allowances when setting their rental rates. Without specific market rent data, it's impossible to determine the precise reimbursement gap or surplus, but understanding the SAFMR and how vouchers work is essential for managing expectations and financial planning.
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.