Section 8 Fair Market Rent (FMR) for ZIP 94017 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 94017, located in San Francisco County, California, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $3600 for the fiscal year 2024. This SAFMR specifically applies to this ZIP code, reflecting the unique rental dynamics of the area.

To understand what a landlord can expect from a Section 8 voucher, it's essential to break down the components involved. A tenant's portion typically covers 30% to 40% of their income towards rent, while the Housing Authority subsidizes the remainder up to the SAFMR limit. Utility allowances are also provided but do not exceed a certain amount, which varies based on the region and household size.

In ZIP 94017, landlords should be aware that the voucher payment does not cover the entire SAFMR amount. For instance, if the tenant's portion is $1080 (assuming a 30% contribution from an income of $3600), the Housing Authority would pay the difference between the tenant's portion and the SAFMR, but only up to the SAFMR cap. In this case, the Housing Authority would pay $2520 ($3600 - $1080), assuming the total rent does not exceed the SAFMR limit. If the total rent exceeds $3600, the landlord will not receive additional funds beyond the SAFMR cap, leading to a potential loss of income.

Utility allowances are a fixed amount designed to cover the tenant's utilities. In San Francisco County, these allowances are generally lower than the actual utility costs, meaning landlords might need to adjust their expectations regarding utility reimbursements. However, the exact amount of the utility allowance is not specified in the provided data, so landlords must consult the local Housing Authority for precise figures.

Given the SAFMR of $3600 and assuming a tenant's contribution of $1080, the typical reimbursement gap for a two-bedroom unit in ZIP 94017 is $1080. This means landlords would receive $2520 from the Housing Authority, falling short of the SAFMR by $1080. It's important to note that the local market rent is currently unavailable, which makes it challenging to assess whether the SAFMR aligns with the prevailing market rates in the area.

Landlords must carefully consider these factors when deciding whether to participate in the Section 8 program. While the program provides a steady stream of income, it may not fully cover the cost of renting a property at market rates, especially for units priced above the SAFMR.

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.