Section 8 Fair Market Rent (FMR) for ZIP 92280 - 2027

FY 2027 Fair Market Rent Rates

To understand the economics of Section 8 in ZIP code 92280, it's essential to know the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1940 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental conditions of the area.

The local market rent for a two-bedroom unit in ZIP 92280 is currently unavailable, which makes direct comparisons challenging. However, we can still break down the financials based on the SAFMR. A landlord participating in the Section 8 program receives a reimbursement from the government to cover the difference between the tenant's contribution and the total rent. Here's how it works:

Tenants are generally expected to pay 30% of their adjusted income towards rent. If a tenant's adjusted monthly income is $1500, they would contribute $450 to the rent. The remaining amount up to the SAFMR of $1940 would be covered by the housing authority. In this case, the housing authority would reimburse the landlord $1490 per month ($1940 - $450).

In addition to the base rent, there are utility allowances. These vary but typically add an extra $100 to $300 to the reimbursement, depending on the actual costs incurred by the tenant. For simplicity, let's assume a utility allowance of $200. This brings the total reimbursement to $1690 per month ($1490 + $200).

If the local market rent were higher than the SAFMR, landlords might face a reimbursement gap. Conversely, if the market rent is lower, they could see a surplus. Given the SAFMR of $1940, if the market rent is indeed higher, landlords will have to adjust their expectations accordingly. They must either accept a lower rent or find ways to reduce their costs to remain competitive and profitable.

Until the local market rent data becomes available, landlords should prepare for a potential reimbursement gap if market rents exceed the SAFMR. For instance, if the market rent for a two-bedroom apartment is $2100, the landlord would receive $1690 from the housing authority, resulting in a shortfall of $410 per month. This is a critical factor for landlords to consider when deciding whether to participate in the Section 8 program.

In summary, landlords in ZIP 92280 can expect a reimbursement of up to $1940 for a two-bedroom apartment, with an additional $200 for utilities, totaling $1690 per month, assuming a tenant's income contribution of $450. The actual financial impact depends on the local market rent, which could lead to either a reimbursement gap or surplus.

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.