Section 8 Fair Market Rent (FMR) for ZIP 98111 - 2027

FY 2027 Fair Market Rent Rates

To understand how Section 8 economics work in ZIP code 98111, it's essential to know the specifics of the housing assistance payments in this area. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $2700 for fiscal year 2024. This figure is crucial because it is the maximum amount that the Housing Choice Voucher program will pay for a unit in this specific ZIP code.

The SAFMR takes into account the local rental market conditions, ensuring that the rates are reflective of the actual costs landlords might face. However, it's important to note that the local market rent is currently unavailable, which makes direct comparisons challenging. Nonetheless, the SAFMR provides a benchmark for what is considered fair rent in the area.

A voucher payment consists of two parts: the tenant contribution and the utility allowance, alongside the subsidy paid by the government. Tenants are generally required to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1800 per month, the tenant would contribute approximately $540 ($1800 * 0.3).

The remaining amount, which is subsidized by the government, is calculated based on the SAFMR minus the tenant's contribution. In this case, the government would pay $2160 ($2700 - $540). Additionally, there is a utility allowance that varies but typically ranges from $200 to $300 per month, depending on the number of bedrooms and the specific needs of the household.

This means that for a two-bedroom apartment in ZIP 98111, the total reimbursement a landlord can expect from the Section 8 program would be between $2360 and $2460 per month, assuming the highest utility allowance. This calculation is straightforward and gives landlords a clear idea of the financial expectations when accepting vouchers.

In terms of the reimbursement gap or surplus, if the local market rent were higher than the SAFMR, landlords would experience a shortfall. Conversely, if the market rent were lower, landlords would receive a surplus. Given the SAFMR of $2700 and the lack of specific local market rent data, it's critical for landlords to compare this rate with their own rental pricing to determine whether they will have a surplus or need to adjust their rates to avoid a significant gap.

In summary, landlords in ZIP 98111 can expect a voucher payment of up to $2460 per month for a two-bedroom apartment, considering both the government subsidy and the utility allowance. This amount is fixed by the SAFMR and is not subject to negotiation. Landlords must decide if this reimbursement meets their financial needs or if they require additional rent from tenants to cover operating costs and maintain profitability.

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.