Section 8 Fair Market Rent (FMR) for ZIP 92338 - 2027

FY 2027 Fair Market Rent Rates

In ZIP code 92338, the Section 8 economics are straightforward and can be explained using the latest data. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1940. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant who qualifies for the Section 8 Housing Choice Voucher program.

The SAFMR is crucial because it determines the reimbursement rate to landlords. It's important to note that the local market rent is not provided here, which means you should refer to other sources for current rental rates in ZIP 92338 to compare with the SAFMR. However, for the purposes of understanding Section 8 payments, we'll focus on the SAFMR.

A landlord receives payment from the voucher program based on the SAFMR, but this amount is not the full rent. Tenants are required to contribute a portion of their income towards rent, typically around 30%. If a tenant has an annual income of $20,000, their monthly contribution would be approximately $500 ($20,000 / 12 * 0.3).

The remaining balance is covered by the housing authority, up to the SAFMR limit. In our example, if the tenant contributes $500, the housing authority would cover the difference between the tenant's contribution and the SAFMR, which is $1440 ($1940 - $500).

Additionally, the voucher program includes utility allowances, which vary by region and household size. For a two-bedroom unit, the utility allowance might be around $300 per month. This allowance is separate from the rent reimbursement and directly benefits the tenant.

To summarize, if a landlord charges $1940 for a two-bedroom apartment in ZIP 92338, they would receive $1440 from the housing authority, assuming the tenant's contribution is $500. If the market rent exceeds the SAFMR, landlords will face a reimbursement gap. Conversely, if the market rent is below the SAFMR, landlords may see a surplus in their actual receipt versus the local market average.

In ZIP 92338, the typical reimbursement gap or surplus for a two-bedroom voucher is the difference between the local market rent and $1940. Without specific market rent data, landlords should ensure their rent is competitive yet does not exceed the SAFMR to avoid financial shortfalls.

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.