Section 8 Fair Market Rent (FMR) for ZIP 79968 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 79968, located in El Paso County, Texas, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1150 for fiscal year 2024. This figure is specific to ZIP 79968 and reflects the maximum amount that the housing authority will pay on behalf of eligible tenants. However, it's important to note that the local market rent is currently unavailable, which means we can't directly compare the SAFMR to the actual rents being charged in the area.

A Section 8 voucher works by covering the difference between what a low-income family can afford and the rent of their chosen home. Specifically, the tenant is responsible for paying approximately 30% of their adjusted income toward rent. For example, if a tenant's monthly adjusted income is $1000, they would pay $300 toward rent. The remaining balance is covered by the voucher, up to the SAFMR limit. In ZIP 79968, the housing authority would then cover the rest of the rent, up to $1150 per month.

In addition to the base rent, Section 8 vouchers also include utility allowances. These allowances vary but are typically around $200-$300 per month for a two-bedroom unit. Therefore, if the total rent plus utilities exceeds $1150, the landlord will not receive additional funds from the housing authority for those extra costs. The tenant must either find a way to cover the excess or choose another unit where the total does not exceed the SAFMR.

To illustrate, consider a two-bedroom apartment in ZIP 79968 with a total rent and utility cost of $1300. If the tenant's portion is $300, the housing authority would pay $850 to bring the total payment to $1150. The landlord would have a reimbursement gap of $150 per month, meaning they would not be fully compensated for the actual rent and utility charges.

Conversely, if the total rent and utilities are less than $1150, say $1000, the landlord would receive the full amount from the housing authority plus the tenant's contribution, resulting in a surplus of $150. This scenario is less common but does occur when the local market rents are below the SAFMR.

In summary, landlords participating in Section 8 in ZIP 79968 should expect a reimbursement of up to $1150 for a two-bedroom unit, with any additional costs beyond this amount being the responsibility of the tenant. Given the SAFMR and typical tenant contributions, there is likely to be a reimbursement gap, especially if the local market rents are higher than the SAFMR. The exact size of this gap depends on the individual rent and utility costs of the property, but it is something landlords need to account for when setting their rental rates.

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.