Location: Flagstaff, AZ | Metro: Flagstaff, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,450 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
The economics of Section 8 in ZIP 86002, located in Flagstaff County, Arizona, operate under the federal guidelines for the Section 8 Housing Choice Voucher Program. For a two-bedroom apartment in this specific ZIP code, the Standard Amount Fair Market Rent (SAFMR) for fiscal year 2024 is set at $1860. This figure represents the maximum amount that the government will pay towards rent for a two-bedroom unit in this ZIP code.
The SAFMR is established based on local rental market conditions and is designed to ensure that rents are reasonable and affordable. However, it's important to note that the local market rent for ZIP 86002 is currently not available, which means that the SAFMR serves as a benchmark for landlords participating in the program.
A landlord's actual reimbursement from a voucher depends on several factors, including the tenant's portion of the rent and any applicable utility allowances. Tenants are generally required to pay 30% of their adjusted income towards rent. If a tenant has an adjusted income of $1500 per month, they would contribute $450 towards the monthly rent. The remaining amount is covered by the Section 8 voucher up to the SAFMR limit of $1860.
In addition to covering the rent, the voucher program also provides utility allowances, which can vary depending on the type of utilities used in the property. These allowances are meant to help cover the cost of utilities such as electricity, gas, water, and sewage. For a two-bedroom apartment, the utility allowance might be around $200 per month, but this can differ based on individual circumstances and local standards.
To calculate the total reimbursement a landlord would receive, you add the tenant's contribution to the utility allowance. Using the example above, if the tenant contributes $450 and the utility allowance is $200, the total reimbursement would be $650. Therefore, the government would pay the difference between the total reimbursement and the SAFMR, which in this case would be $1210 ($1860 - $650).
This means that in ZIP 86002, landlords can expect to receive a total of $1860 for a two-bedroom apartment, with $650 coming from the tenant and $1210 from the government. However, since the local market rent is not available, it's unclear whether this amount is above or below the typical market rates for similar units in the area.
If the local market rent were higher than the SAFMR, there would be a reimbursement gap, meaning landlords would not be fully compensated for the market value of their rental units. Conversely, if the local market rent is lower than the SAFMR, landlords would receive a surplus, benefiting from higher guaranteed payments compared to what they might otherwise receive in the open market.
To conclude, the typical reimbursement for a two-bedroom apartment in ZIP 86002 is $1860, with the exact distribution between tenant and government payments varying based on the tenant's income and utility usage. Landlords should be aware of the potential reimbursement gap or surplus when deciding whether to participate 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.