Section 8 Fair Market Rent (FMR) for ZIP 79464 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 79464, located in Lubbock County, Texas, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1120 for fiscal year 2024. This SAFMR is specific to this ZIP code, reflecting local rental market conditions more accurately than broader metro or county-level rates.

Section 8 vouchers cover a significant portion of the rent but not all of it. The voucher amount is determined based on the SAFMR and the tenant's ability to pay, which is typically 30% of their adjusted income. For ZIP 79464, if we assume an average SAFMR of $1120, then the voucher would cover the remainder after subtracting the tenant's portion. If the tenant's share is $336 (30% of $1120), the voucher would cover the rest, up to $1120. However, the actual amount can vary depending on the individual tenant's income.

In addition to the rent covered by the voucher, there are utility allowances. These allowances vary by location and household size but generally provide a fixed amount toward utilities. For a two-bedroom unit, the utility allowance might be around $300 per month, though this figure should be confirmed with the local housing authority. This means the total reimbursement a landlord could receive from a voucher is the sum of the rent subsidy and the utility allowance.

To illustrate, if the SAFMR is $1120 and the tenant's portion is $336, the voucher would cover $784 of the rent. Adding the utility allowance of $300, the total reimbursement would be $1084. Therefore, the landlord would need to ensure that the tenant's portion plus any additional payments they make to cover the difference between the SAFMR and the market rent, if applicable, aligns with the overall economic goals of their investment.

The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 79464 is calculated by comparing the SAFMR ($1120) with the local market rent. Since the local market rent is not available, we cannot definitively state whether there will be a gap or surplus. However, if the local market rent is higher than $1120, landlords would face a gap where they must decide whether to accept the lower reimbursement or seek non-voucher tenants. Conversely, if the market rent is lower, landlords could potentially see a surplus when accepting Section 8 vouchers.

Landlords in ZIP 79464 should regularly check the SAFMR updates and local market rents to make informed decisions about participating in the Section 8 program. They should also consider the long-term stability and security of lease agreements when evaluating the economic benefits of accepting vouchers.

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.