Section 8 Fair Market Rent (FMR) for ZIP 85080 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 85080, located in Phoenix-Mesa-Chandler County, Arizona, revolve around the Subsidized Average Fair Market Rent (SAFMR) for a two-bedroom unit, which is set at $1880 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental rates deemed fair and reasonable within this particular area.

To understand what a voucher actually pays, consider the following breakdown. A tenant's portion of the rent is typically 30% of their adjusted income. If we take an example where the tenant's adjusted income is $1500 per month, their contribution would be $450. The remainder of the rent is covered by the housing authority, up to the SAFMR limit of $1880. In this case, the housing authority would pay the landlord $1430 ($1880 - $450).

Utility allowances are also a factor. These vary but are generally around $300-$400 per month for a two-bedroom unit. This allowance does not directly affect the rent reimbursement; rather, it is intended to help cover the cost of utilities for the tenant. However, it's important to note that landlords should not charge tenants for utilities separately if they are included in the rent or if the tenant receives a utility allowance.

The reimbursement gap or surplus arises when comparing the SAFMR to the local market rent. Since the local market rent data is not available, we cannot provide a precise figure for the gap or surplus. However, if the market rent were higher than $1880, landlords would face a reimbursement gap, meaning they would receive less than the market rent from the voucher program. Conversely, if the market rent were lower than $1880, landlords could potentially benefit from a surplus, receiving more than what they might typically charge in the local market.

In conclusion, for a landlord in ZIP 85080, a two-bedroom voucher will reimburse up to $1880 per month, with the tenant paying 30% of their adjusted income towards rent. The exact reimbursement gap or surplus cannot be determined without the local market rent data, but it's clear that landlords should carefully consider the SAFMR when setting rents for units participating in the Section 8 program.

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.