Section 8 Fair Market Rent (FMR) for ZIP 95364 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 95364 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1,590 per month for fiscal year 2026. This figure is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.

A common misconception among landlords is that they will receive the full SAFMR amount. However, the actual payment is determined by the tenant's portion plus the utility allowance. Typically, tenants contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500, the tenant would pay approximately $450 toward rent. The remaining balance is covered by the housing authority, up to the SAFMR limit.

To illustrate, if the total rent for a two-bedroom unit is $1,590, and the tenant pays $450, the voucher program would cover the rest, which is $1,140. However, this calculation assumes the total rent does not exceed the SAFMR. In cases where the market rent is higher than the SAFMR, landlords must adjust their expectations. For ZIP 95364, since the local market rent data is currently unavailable, it's important to consider that the SAFMR is designed to be competitive with the market rates in the area.

Utility allowances vary but generally provide around $200-$300 per month for electricity, gas, water, and sewer services. These allowances can help cover some of the costs associated with utilities, though landlords should note that these amounts are fixed and do not fluctuate based on actual usage.

In ZIP 95364, the typical reimbursement gap or surplus for a two-bedroom voucher is calculated by subtracting the tenant's contribution from the SAFMR. Given the SAFMR of $1,590 and assuming a $450 tenant contribution, the voucher would cover $1,140. Therefore, landlords would receive $1,140 from the housing authority plus the $450 from the tenant, totaling $1,590. There is no surplus or deficit in this scenario, as the SAFMR aligns with the expected total rent.

Landlords should also be aware that while the SAFMR provides a stable rental income, it might not match the peak market rents during times of high demand. However, the consistency and reliability of Section 8 payments make it a preferred option for many landlords, especially those looking for long-term tenancy.

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.