Section 8 Fair Market Rent (FMR) for ZIP 88439 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 88439 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1,010 per month for fiscal year 2026. This figure represents the maximum amount that the federal government will reimburse landlords participating in the Housing Choice Voucher program.

To understand how this affects your income, you must account for the tenant's contribution and any utility allowances. Tenants typically pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500, the tenant would contribute $450 monthly toward rent. Utility allowances vary but can be estimated around $200-$300 per month, depending on the household size and local utility costs.

This means the total reimbursement you receive from the Section 8 program would be the sum of the tenant's contribution and the utility allowance, up to the $1,010 limit. For instance, if the tenant contributes $450 and the utility allowance is $250, the total reimbursement would be $700. However, if the tenant's contribution plus utility allowance exceeds $1,010, the government will only pay the $1,010 limit.

The SAFMR is specifically tailored for ZIP code 88439, ensuring it reflects the local rental market conditions. Despite the lack of specific local market rent data, it's important to note that the SAFMR is designed to cover about 40% of the median rent for a given area, making it a reasonable estimate of the fair market value.

In ZIP 88439, landlords might find themselves with a surplus or a shortfall when comparing the voucher reimbursement to the actual market rents. Since the local market rent is currently not available, we can't provide a precise figure for the reimbursement gap or surplus. However, if the market rent were higher than the SAFMR, you would face a shortfall. Conversely, if the market rent were lower, you could see a surplus.

To illustrate, let's assume the market rent for a 2BR unit is $1,200. With a reimbursement of $1,010, you would have a shortfall of $190 per month. On the other hand, if the market rent is $800, the surplus would be $210. These examples highlight the importance of understanding the local rental market and the specific terms of the vouchers you accept.

In conclusion, landlords in ZIP 88439 should expect a reimbursement of up to $1,010 for a two-bedroom unit under the Section 8 program, with the exact amount dependent on the tenant's contribution and utility allowances. The gap or surplus between this amount and the actual market rent will determine the financial impact on your property.

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.