Section 8 Fair Market Rent (FMR) for ZIP 93412 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 93412, located in San Luis Obispo-Paso Robles County, California, are straightforward when you understand the formula and how it applies. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $2270. This SAFMR figure is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.

A landlord participating in the Section 8 program will receive a payment from the housing authority that covers the difference between the SAFMR and the tenant's portion of the rent. The tenant's portion is generally 30% of their adjusted income, which can vary widely depending on individual circumstances. However, let's assume an average scenario where the tenant contributes about $681 towards the rent, based on a median income level for the area.

In addition to the tenant's contribution, the housing authority also provides a utility allowance. For a two-bedroom unit, this allowance typically ranges from $300 to $400 per month, depending on the specific needs and the number of occupants. Let's use an average utility allowance of $350 for our calculations.

Combining these elements, the total monthly reimbursement a landlord can expect from the housing authority would be around $2270. This amount includes both the tenant's contribution and the utility allowance. In practice, this means the landlord receives $1589 directly from the housing authority, plus the $681 from the tenant, totaling the SAFMR of $2270.

Given that the local market rent is currently unknown, it's important to compare the SAFMR with typical market rates in the past. If we consider historical data, local market rents for two-bedroom apartments have often been higher than the SAFMR, leading to a potential shortfall for landlords. For instance, if the previous market rent was around $2400, there would be a reimbursement gap of approximately $130 per month. Conversely, if the market rent is lower than the SAFMR, landlords could see a surplus.

To summarize, landlords in ZIP 93412 should anticipate receiving $2270 for a two-bedroom apartment under the Section 8 program. This figure represents a combination of the tenant's contribution and the utility allowance. Whether this results in a surplus or a gap depends on the actual market rent, but historically, there has been a slight reimbursement gap.

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.