Section 8 Fair Market Rent (FMR) for ZIP 79008 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 79008 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $970 for fiscal year 2026. This SAFMR figure is specifically tailored for this ZIP code, reflecting local rental market conditions more accurately than broader metro or county-level rates.

In ZIP 79008, the local market rent data is currently unavailable, making it difficult to compare the SAFMR directly to the average market rent. However, the SAFMR serves as the benchmark for determining the maximum amount that the Housing Choice Voucher program will reimburse landlords.

A voucher holder is typically responsible for paying 30% of their adjusted income towards rent. This amount, known as the tenant portion, is subtracted from the total rent, and the remaining balance is paid by the government up to the SAFMR limit. For instance, if a tenant's monthly adjusted income is $1,500, they would pay $450 towards rent. If the rent is set at $970, the government would cover the difference, up to $520, assuming no utility allowances apply.

The voucher program also includes utility allowances, which can vary based on the type of utilities required for the property. These allowances are added to the government reimbursement but do not exceed the SAFMR. Therefore, if a landlord includes utilities in the rent, these must be considered when setting the overall rent to ensure it does not exceed the $970 limit.

To illustrate, let’s assume a two-bedroom apartment in ZIP 79008 is priced at $1,000 per month, including utilities. If the tenant’s portion is $450, the government would pay the remaining $550, but since the total rent exceeds the SAFMR, the landlord would only receive $520 from the government, resulting in a shortfall of $30.

Conversely, if the rent is set below the SAFMR, say at $900, and the tenant’s portion remains at $450, the government would pay $450, leaving no shortfall for the landlord. In such a scenario, the landlord benefits from a guaranteed payment without the risk of a reimbursement gap.

In summary, the typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 79008 depends on how the rent is structured. Landlords should ensure that the total rent, including utilities, does not exceed $970 to avoid shortfalls. By setting the rent appropriately, landlords can expect a stable income source from the voucher program, aligning closely with the SAFMR of $970.

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.