Section 8 Fair Market Rent (FMR) for ZIP 95226 - 2027

FY 2027 Fair Market Rent Rates

To understand the economics of Section 8 housing in ZIP code 95226, it's essential to know the subsidized rental rates versus the local market rates. For fiscal year 2026, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1,540. This figure represents the maximum amount that the government will pay on behalf of a tenant through the Housing Choice Voucher program.

The SAFMR is designed to reflect the actual rental market conditions in a given area, ensuring that the subsidy covers the cost of renting a modest home. However, the local market rent for ZIP 95226 is currently unavailable, which makes direct comparison challenging. Despite this, landlords can still rely on the SAFMR as a benchmark for their rental pricing.

A Section 8 voucher works by covering the difference between what a tenant can afford and the rent of a modest home. The tenant is responsible for paying approximately 30% of their adjusted monthly income towards rent. The remaining amount, up to the SAFMR, is then covered by the voucher. For instance, if a tenant has an adjusted monthly income of $2,000, they would be expected to contribute $600 towards rent. The voucher would cover the rest, up to the $1,540 limit.

In addition to the base rent, there are utility allowances that vary based on the size of the unit and the region. These allowances are meant to help cover the costs of utilities such as electricity, gas, water, and sewage. The exact amount of the utility allowance for a two-bedroom unit in ZIP 95226 is not specified here, but it typically ranges from $200 to $300 per month, depending on the local utility costs.

Given these parameters, let's walk through a typical scenario. If a tenant's contribution is $600 and the utility allowance is $250, the total reimbursement to the landlord would be $850 from the tenant and the voucher program combined. This leaves a potential gap of $690 between the total SAFMR and the amount reimbursed by the voucher program. Landlords must ensure that their rent does not exceed the SAFMR to qualify for the voucher program, but they should also consider the additional utility allowance when setting their rent prices.

The typical reimbursement gap for a two-bedroom apartment in ZIP 95226 is thus $690, assuming the tenant contributes $600 and the utility allowance is $250. This means landlords might need to adjust their expectations regarding rental income from properties participating in the Section 8 program. However, the stability of having a government-backed payment plan can outweigh the financial shortfall for many landlords.

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.