Section 8 Fair Market Rent (FMR) for ZIP 95430 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 95430 are defined by the SAFMR (Small Area Fair Market Rent) rates established by HUD (Housing and Urban Development). For fiscal year 2024, the SAFMR for a two-bedroom apartment in this ZIP code is set at $2030. This figure is specific to 95430 and does not necessarily reflect the rates in other areas of the same county or state.

To understand how this affects landlords, let's break down the components of a Section 8 voucher payment. A tenant using a Section 8 voucher is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 for a household in this area, the tenant would contribute approximately $450 toward the monthly rent. The remaining amount, up to the SAFMR, is covered by the housing authority.

In addition to the base rent, the voucher also includes allowances for utilities. These can vary based on the type of utilities used (electricity, gas, water, etc.) but typically range between $100 and $200 per month. Assuming a utility allowance of $150, the total reimbursement from the housing authority would be around $1680 ($2030 - $450 tenant contribution).

This means that if you charge the SAFMR rate of $2030 for your two-bedroom unit, you will receive a reimbursement of $1680 from the housing authority, plus the $450 directly from the tenant, totaling $2130. However, since the SAFMR is the maximum allowable rent, you cannot charge above this rate even if the market conditions suggest higher rents could be justified.

Given that the local market rent data is currently unavailable, it's important to consider that the SAFMR might be below or above the actual market rate. If the market rent were higher than $2030, you would face a reimbursement gap, where the voucher does not cover the full market value of the rental property. Conversely, if the market rent is lower, you would have a surplus, meaning the voucher would cover more than the going market rate.

In summary, for a two-bedroom apartment in ZIP 95430, the SAFMR is $2030. With a typical tenant contribution of $450 and a utility allowance of $150, the total reimbursement from the voucher program would be $2130. This leaves a potential reimbursement gap or surplus depending on the actual local market rent.

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.