Section 8 Fair Market Rent (FMR) for ZIP 89595 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 89595, located in Reno County, Nevada, revolve around the Subsidy Allocation Fair Market Rent (SAFMR) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1580. This figure represents the maximum amount that the government will pay on behalf of eligible tenants under the Section 8 Housing Choice Voucher program.

To understand how much a landlord can expect to receive, it's important to break down the components of the voucher payment. The tenant is responsible for paying 30% of their adjusted income towards rent, plus a portion for utilities. If we assume an average adjusted income of $1500 for a tenant, they would contribute $450 towards rent. This leaves the government to cover the remaining $1130 out of the $1580 maximum. However, the actual reimbursement can be less if the local market rent is lower than the SAFMR, but since the local market rent for ZIP 89595 is not available, we'll proceed with the SAFMR.

In addition to the rent subsidy, the government also provides a utility allowance. This allowance varies based on the region and type of unit, but for ZIP 89595, it typically amounts to about $200 per month for a two-bedroom unit. Therefore, the total monthly reimbursement a landlord might receive is the sum of the rent subsidy and the utility allowance, which equals $1330 ($1130 + $200).

This means there is a reimbursement gap between the SAFMR and what the landlord actually receives. In ZIP 89595, the gap is $250 per month ($1580 - $1330). Landlords must consider this gap when deciding whether to participate in the Section 8 program. It is crucial to note that while the SAFMR is the ceiling for government payments, the actual amount paid depends on the tenant's contribution and the utility allowance.

In summary, for a two-bedroom apartment in ZIP 89595, landlords should expect to receive a total of $1330 per month from the Section 8 program, leading to a shortfall of $250 compared to the SAFMR of $1580. This analysis is based on the specific SAFMR for this ZIP code and standard assumptions about tenant contributions and utility allowances.

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.