Section 8 Fair Market Rent (FMR) for ZIP 93639 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 93639, located in Madera County, California, operate under specific financial guidelines designed to support both tenants and landlords. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1430. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental market conditions unique to 93639.

A landlord participating in the Section 8 program will receive a portion of the rent directly from the tenant and another portion from the housing authority. The tenant is responsible for paying approximately 30% of their adjusted income towards rent. This amount is known as the tenant portion. Additionally, there are utility allowances which can vary but typically cover the cost of electricity, water, and gas.

To illustrate, if a tenant's adjusted monthly income is $1000, they would pay 30% of this, which is $300, towards the rent. The remaining $1130 of the SAFMR ($1430 - $300) would be covered by the housing authority. However, the actual reimbursement amount can be slightly less due to the utility allowance which is included in the SAFMR but paid directly to the tenant or managed separately depending on the housing authority's policies.

In ZIP 93639, the local market rent data is currently unavailable, making it difficult to provide a direct comparison between market rates and the SAFMR. Nonetheless, landlords should understand that the SAFMR serves as the ceiling for the total rent that can be charged for a Section 8 unit. If the market rent were higher, landlords would still be limited to the SAFMR when renting to Section 8 participants.

The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 93639, based on the SAFMR of $1430, would be calculated by subtracting the tenant's contribution and any applicable utility allowances from the SAFMR. Assuming a standard utility allowance of around $200, the housing authority would cover $930 of the SAFMR, leaving the landlord with a total of $1230 ($300 from the tenant + $930 from the housing authority).

This means that in ZIP 93639, landlords may experience a reimbursement gap if the local market rents exceed the SAFMR. Conversely, if the local market rents are lower than $1430, landlords might find themselves with a surplus, receiving more than the typical market rate for similar properties.

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.