Section 8 Fair Market Rent (FMR) for ZIP 98194 - 2027

FY 2027 Fair Market Rent Rates

To understand how Section 8 economics work in ZIP code 98194, which is located in Seattle-Bellevue County, WA, it's crucial to know the specifics of the SAFMR (Small Area Fair Market Rent) and how it interacts with local market conditions.

The SAFMR for a two-bedroom apartment in ZIP 98194 for fiscal year 2024 is set at $2700. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant who uses a Section 8 voucher. It's important to note that this SAFMR is specific to this ZIP code, meaning it reflects the rental market conditions in this precise area.

A voucher holder typically pays 30% of their adjusted income toward rent. For example, if a tenant has an adjusted monthly income of $1800, they would pay $540 towards rent. The remaining balance up to the SAFMR of $2700 is covered by the Section 8 program. If the total rent required is less than $2700, the landlord receives the full rent from the combination of the tenant's contribution and the voucher payment.

In addition to the base rent, landlords should be aware of utility allowances. These allowances vary but generally cover a portion of the tenant's utilities, such as electricity, gas, and water. For instance, if the utility allowance is $200 per month, this amount is added to the base rent payment, bringing the total reimbursement to $2900.

However, since the local market rent data is currently unavailable, we cannot provide a direct comparison between the SAFMR and what landlords might typically charge in the open market. This makes it challenging to determine whether the SAFMR covers the full cost of renting or leaves a surplus or shortfall.

To illustrate, if the market rent for a 2BR in this ZIP code were hypothetically $3000, then the landlord would receive $2700 from the Section 8 program plus the tenant's contribution of $540, totaling $3240. With a utility allowance of $200, the total reimbursement would be $3440, leaving a surplus of $440.

Conversely, if the market rent were $2500, the landlord would receive the full $2700 from the Section 8 program, including the tenant's contribution and utility allowance, resulting in a surplus of $200.

Given the SAFMR of $2700, landlords need to consider the actual market conditions in ZIP 98194 to determine if there will be a surplus or a shortfall. Without specific market rent figures, it's difficult to quantify the exact gap or surplus. However, the SAFMR provides a solid benchmark for setting reasonable rents that can be covered by the voucher system.

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.