Section 8 Fair Market Rent (FMR) for ZIP 79760 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 79760, located in Odessa County, Texas, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1480. This figure represents the maximum amount that a Section 8 voucher will cover for rent in this particular ZIP code.

A voucher holder pays 30% of their adjusted income toward rent. If we assume an average adjusted income for a family in ZIP 79760, this could mean that the tenant's portion might be around $444, given a hypothetical adjusted income of $1480. However, this exact amount can vary based on the individual tenant's income. Once the tenant's contribution is calculated, the remainder is covered by the Section 8 program up to the $1480 limit.

In addition to the rent, the Section 8 program also provides utility allowances. These allowances vary but typically cover essential utilities such as electricity, water, and gas. While the exact allowance isn't specified here, it generally ranges from $100 to $300 per month depending on the household size and the type of utilities required. Therefore, if the utility allowance is $200, the total monthly reimbursement to the landlord would be $1680 ($1480 for rent plus $200 for utilities).

The SAFMR being set at the ZIP level means that the rate is determined specifically for this ZIP code, taking into account local economic conditions, housing costs, and other factors relevant to the area. This ensures that the reimbursement rates are reflective of the actual rental market in ZIP 79760.

Given the local market rent is not available, it's crucial for landlords to understand the potential reimbursement gap or surplus. If the market rent is higher than the SAFMR, landlords will face a reimbursement gap, meaning they won't receive the full market rent from the voucher program. Conversely, if the market rent is lower, landlords might experience a surplus, receiving more than the standard market rate.

To illustrate, if the local market rent for a 2BR was hypothetically $1600, the landlord would have a reimbursement gap of $120 per month ($1600 - $1480). On the other hand, if the market rent was $1300, the landlord would receive a surplus of $180 per month ($1480 - $1300). It's important to note that these examples are illustrative since the actual market rent is currently unknown.

Landlords must carefully consider the SAFMR and any potential gaps or surpluses when deciding whether to participate in the Section 8 program in ZIP 79760. The final reimbursement to the landlord will be the sum of the tenant's portion and the utility allowance, capped at $1480 for rent.

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.