Section 8 Rental Price & FMR

[Christopher Stead]

Hello, I am new to section 8 model (always done traditional renters) and I am trying to understand how to effectively post a home for a section 8 tenant. 

I am using affordablehousing.com and the rental rates from other landlords are about 1100-1200 in this zip code however, the HUD FMR is 1,420. The local HUD offers up to 1,700! What am I doing wrong?? I posted it at 1420 on the website but no applicants. Should I reduce this listing? But then why tell me the government site will pay up to 1420 and the local HUD at up to 1700. Seems like a big difference!

Help please!

[Scott Nachitilo]

Hey Christopher, welcome to Section 8! That FMR vs. market-rate gap is super common and frustrating. In OKC, I see this all the time, landlords often list below FMR to attract tenants faster, even though HUD could pay more. Your $1420 listing might simply be higher than what Section 8 tenants are used to seeing or comparing in that specific neighborhood on sites like Affordable Housing. While HUD allows up to $1420 (or $1700 locally for specific programs/vouchers), tenants still shop for the best deal, and your price appears high compared to the $1100-1200 competition.

My advice: Temporarily lower your listing to around $1200-$1250 to be competitive within your local Section 8 market on that platform. Why? Because the housing authority will still pay their portion based on the tenant's voucher size and income, up to the FMR. You'll likely get qualified applicants faster at that lower price point. Remember, the tenant pays 30% of their income towards rent regardless of your listed price (as long as it's at or below FMR). Dropping to $1200 doesn't mean you lose $220; it means the tenant's portion might be slightly less, but the HA covers the rest up to FMR, making it a reliable income. Get applicants in the door at a competitive rate, ensure your unit passes inspection (crucial!), and get it leased.

Good luck!