Section 8 Fair Market Rent (FMR) for ZIP 84152 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 84152, located in Salt Lake City County, Utah, operate under specific parameters that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1610. This figure represents the maximum amount that the housing authority will pay for rent on behalf of a tenant participating in the Section 8 program.

A crucial aspect for landlords to understand is the breakdown of the payment structure. Tenants are typically required to contribute 30% of their adjusted income toward rent. For instance, if a tenant's monthly income is $1600, they would be responsible for paying approximately $480 towards rent. The remaining balance up to the SAFMR of $1610 would then be covered by the housing authority. However, it’s important to note that the actual reimbursement can vary depending on the tenant's income level.

In addition to the base rent, there are utility allowances that must be considered. These allowances are designed to cover the cost of utilities such as electricity, gas, water, and sewer. The exact amount varies but is generally less than the total rent. For ZIP 84152, the utility allowance is not specified, so it must be calculated based on local averages or the housing authority's guidelines.

The SAFMR of $1610 is specific to this ZIP code, meaning that it reflects the rental market conditions within 84152. If your property is in this ZIP code, you can expect this to be the maximum reimbursement rate for a two-bedroom unit. However, if the local market rent is higher than the SAFMR, landlords may face a reimbursement gap where they receive less than the market value for their units.

To illustrate, let’s assume the local market rent for a two-bedroom apartment in ZIP 84152 is $1800 per month. In this case, the housing authority would still only reimburse up to $1610. Therefore, the landlord would need to consider whether the difference of $190 per month is acceptable or if adjustments to the property’s amenities or location might help attract tenants willing to pay closer to the SAFMR rate.

Conversely, if the local market rent is lower than the SAFMR, landlords could potentially benefit from a surplus. For example, if the market rent is $1400, the housing authority would still reimburse up to $1610, resulting in an additional $210 per month above the market rate.

Landlords should also be aware that the housing authority conducts regular inspections to ensure that the property meets certain standards. Failure to comply can result in reduced payments or even disqualification from the program. It is therefore essential to maintain the property to the required standard to avoid any financial penalties.

In summary, for a two-bedroom apartment in ZIP 84152, the typical reimbursement gap or surplus would depend on the local market rent. Given the SAFMR of $1610, landlords must compare this rate against their market rent to determine the financial impact of accepting a Section 8 tenant.

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.