Location: Lake Havasu City-Kingman, AZ | Metro: Lake Havasu City-Kingman, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,220 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 86021 are defined by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1440. This is slightly below the local market rent, which stands at $1,495 according to the Census ACS.
A Section 8 voucher does not cover the entire rent. Instead, it covers the difference between the tenant's portion and the total rent. The tenant's portion is typically 30% of their income, but there are additional considerations such as utility allowances. The utility allowance can vary but generally ranges from $15 to $50 per bedroom. In ZIP 86021, if we assume a standard utility allowance of $30 per bedroom, the total utility allowance for a two-bedroom unit would be $60.
To illustrate, let’s say a tenant has an income that results in a 30% contribution of $400 towards the rent. The voucher program would then pay the remaining amount up to the SAFMR limit of $1440. Therefore, the voucher would pay $1040 ($1440 - $400) plus the utility allowance of $60, totaling $1100.
This means that the landlord receives $1100 from the voucher program and $400 from the tenant, summing up to $1500. However, since the SAFMR is $1440, the landlord cannot charge more than this amount for the voucher to cover the rent. Thus, the actual reimbursement received by the landlord would be $1100 (voucher payment + utilities).
In ZIP 86021, where the market rent is $1,495, the landlord would have a reimbursement gap of $395 ($1495 - $1100). This gap represents the shortfall between the market rent and the amount covered by the voucher and tenant contributions combined. Landlords must factor in this gap when considering whether to participate in the Section 8 program in this ZIP code.
Summarizing, landlords in ZIP 86021 should expect a reimbursement of $1100 for a two-bedroom apartment under the Section 8 program, leaving them with a surplus of $40 over the SAFMR but a gap of $395 compared to the local market rent. This economic reality shapes the decision-making process for landlords who are weighing the benefits and drawbacks of accepting Section 8 vouchers.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
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.