Section 8 Fair Market Rent (FMR) for ZIP 98093 - 2027

FY 2027 Fair Market Rent Rates

The Section 8 program in ZIP code 98093 operates under the guidelines of the SAFMR (Small Area Fair Market Rent) system, which sets the rate specifically for this ZIP code. For fiscal year 2024, the SAFMR for a two-bedroom apartment in 98093 is set at $2700. This figure represents the maximum amount that a landlord can receive from the housing authority per month for a two-bedroom unit.

To understand how this translates into actual payments, it's important to consider the components that make up the total reimbursement. The tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $2200 for a household in this area, the tenant would contribute approximately $660 towards the rent. The remainder, $2040, is covered by the housing authority, but this amount includes utility allowances.

The utility allowance is a fixed amount determined by HUD (Housing and Urban Development) and added to the tenant’s contribution. For ZIP 98093, the utility allowance for a two-bedroom apartment is around $300. Therefore, the housing authority will reimburse the landlord $2040 for rent and $300 for utilities, totaling $2340.

This leaves a gap between the SAFMR and the actual reimbursement. In this case, the landlord receives $2340, while the SAFMR is $2700. Thus, the reimbursement gap for a two-bedroom apartment in ZIP 98093 is $360. This means landlords will receive $360 less than the SAFMR rate, which they must consider when deciding whether to participate in the Section 8 program.

Note that the SAFMR is designed to reflect the rental market conditions of the specific ZIP code. However, in this scenario, the local market rent data is not available, making it difficult to compare the SAFMR directly against the prevailing market rates. Landlords should also be aware that the SAFMR can change annually based on HUD assessments of local rental market conditions.

In summary, for a two-bedroom apartment in ZIP 98093, the landlord can expect a reimbursement of $2340 per month from the housing authority, resulting in a gap of $360 compared to the SAFMR of $2700. This economic reality shapes the decision-making process for landlords considering participation in the Section 8 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.