Section 8 Fair Market Rent (FMR) for ZIP 95972 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 95972 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $1420 per month for the fiscal year 2024. This figure is specific to this ZIP code, meaning it reflects the rental rates established for this particular area.

A landlord might wonder how much they will receive from a voucher once the tenant's portion and utility allowances are factored in. Here’s a breakdown:

• Tenant Portion: Typically, tenants contribute 30% of their adjusted income toward rent. For example, if a tenant has an adjusted income of $1000 per month, they would pay $300 toward the rent.
• Utility Allowances: Utility allowances vary but generally cover the cost of utilities not included in the rent. These allowances can range from $200 to $400 per month, depending on the family size and local utility costs.

To illustrate, let's assume the total utility allowance for a two-bedroom unit is $300. If a landlord charges the full SAFMR of $1420, and the tenant contributes $300, the voucher program would cover the remaining $1120 plus the utility allowance of $300. Thus, the landlord would receive a total of $1420 from the voucher program and the tenant combined.

In ZIP 95972, the SAFMR is the benchmark used to determine the maximum amount that the voucher program will pay. Since the local market rent data is currently unavailable, we cannot provide a direct comparison. However, the SAFMR serves as a crucial reference point for landlords who accept Section 8 vouchers.

The typical reimbursement gap or surplus in ZIP 95972 for a two-bedroom unit would be the difference between the local market rent and the SAFMR. Given the lack of specific local market rent data, landlords should be aware that they may face a gap if the market rents exceed the SAFMR of $1420. Conversely, if market rents are below this figure, landlords could see a surplus when accepting a Section 8 voucher.

Landlords must also consider that the voucher program pays only up to the SAFMR, regardless of the actual rent charged. Therefore, setting the rent above $1420 will not increase the payment received from the voucher program.

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.