This rent is also known as the fair market rent.
None of these units were in Silver Spring’s Central Business District.
In 1999 the maximum rent for a two-bedroom apartment leased with a Section 8 voucherwas $820
per month. This analysis uses Section 8 voucher rents as an indicator of affordability.These rents are a convenient dividing point between market rate housing that is affordable tolower income households and housing that is not. Two-bedroom apartment rents are discussed indetail to illustrate the composition of the rental housing stock by price range.According to housing industry standards, an affordable rent should represent no morethan 30 percent of income. This means that the $820 per month apartment is consideredaffordable to households with incomes of $32,800, about 46 percent of MontgomeryCounty’s 1999 estimated medianhousehold income. The standard target rentof no more than 30 percent of income is anextremely desirable goal. However, U.S.Census data and other surveys routinelyreport that many households exceed thispercentage in order to find an adequateplace to live.All rents discussed in this sectionare turnover rents – the rent that is chargedto a new tenant. Long-term tenants maypay somewhat less as landlords often raiserents for continuing tenants less than theyraise the rents for new tenants. The rentalinformation in this Inventory is based on DHCA’s 1999 Rental Apartment Vacancy survey.Some preliminary data from the 2000 survey are also included.In 1999, 38 percent of the County’s two-bedroom rental apartments were priced at orbelow $820 per month. Almost all of these, 85 percent, were garden apartments. Only four high-rise complexes were in this price range, three in Silver Spring or Takoma Park
, and one in KempMill/Four Corners. Their rents ranged from $691 to $800 per month. The least expensive of theseunits is affordable to a household with an annual income of just under $28,000.Twelve mid
rise complexes were in the Section 8 Voucher rent range. Again, all but oneof these are in Silver Spring and Takoma Park. The other is located in Fairland. The rents rangedfrom $571 to
820 per month. The least expensive unit would be affordable to a household with
Type# UnitsPriced Below$820/MonthTotal Two-BedroomUnitsPercentBelow$820Garden Apt.8,99221,44841.9%Mid-Rise3521,8078.0%High-Rise3584,4228.1%Total10,54127,67738.1%
$820 represents the maximum 1999 Section 8 voucher low-income rent.
Supply of Affordable Two-Bedroom Units byHousing Type