Section 8 Fair Market Rent (FMR) for ZIP 94035 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 94035, which is part of San Jose-Sunnyvale-Santa Clara County, can be straightforward if you understand the key components involved. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $3130. This figure is specifically tailored for this ZIP code, meaning it reflects the rental market conditions unique to 94035.

To clarify how a voucher works, let's break down the payment structure. A landlord receives a subsidy from the housing authority to cover the difference between the tenant's contribution and the SAFMR. The tenant typically pays 30% of their adjusted income towards rent. For example, if a tenant has an adjusted income of $20,000 per year, they would pay approximately $500 monthly towards rent ($20,000 * 0.3 / 12). The housing authority then pays the remainder of the rent up to the SAFMR of $3130.

In addition to the base rent, there are utility allowances that vary by region and can affect the total amount a landlord might receive. In ZIP 94035, the utility allowance is not specified, but it generally covers a portion of the tenant's utility costs, which can range from $200 to $500 per month depending on the specifics of the housing situation.

Given these parameters, the typical reimbursement for a two-bedroom apartment in ZIP 94035 under the Section 8 program would be the SAFMR of $3130 minus the tenant's 30% contribution. If we assume a conservative utility allowance of $300, the total reimbursement would be around $3430. However, since the SAFMR is $3130, the landlord would receive the full SAFMR amount plus the utility allowance, totaling $3430.

The reimbursement gap or surplus occurs when comparing the SAFMR to the actual market rent. Since the local market rent for a two-bedroom apartment in ZIP 94035 is not provided, we cannot calculate the exact gap or surplus. However, if the market rent were higher than $3130, the landlord would face a gap, needing to make up the difference between the SAFMR and the market rate. Conversely, if the market rent is lower, the landlord would have a surplus, receiving more than the typical market rate.

To summarize, landlords in ZIP 94035 can expect a Section 8 voucher to cover a significant portion of the rent for a two-bedroom unit, with the total reimbursement being the SAFMR of $3130 plus any applicable utility allowance. Without specific market rent data, it's impossible to quantify the exact gap or surplus, but understanding the SAFMR and how it interacts with the tenant's contribution is crucial for managing expectations and financial planning.

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.