Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,190 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $292,553 | 0.53% | F |
| 3BR | $1,830 | $342,237 | 0.53% | F |
| 4BR | $2,020 | $414,678 | 0.49% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 08083, Somerdale, NJ, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1540. This means that landlords participating in the Section 8 program can expect the Housing Authority to reimburse them up to this amount per month.
However, it's important to understand how the actual reimbursement works. The total rent is split between the tenant and the Housing Authority. The tenant is responsible for paying 30% of their adjusted income towards rent. For example, if a tenant has an adjusted monthly income of $2000, they would pay $600 toward rent. The remaining balance is covered by the Housing Authority, up to the SAFMR limit of $1540. So, in this scenario, the Housing Authority would cover the rest of the rent, which would be $940 ($1540 - $600).
In addition to the rent reimbursement, there is also a utility allowance. The utility allowance varies but typically ranges from $300 to $400 annually per unit. This allowance is intended to help cover the cost of utilities and is paid directly to the landlord. It does not affect the rent reimbursement calculation, but it does provide additional income.
The local market rent, as indicated by ZORI (Zillow Observed Rent Index), is $1628 for a two-bedroom apartment in ZIP 08083. Given that the SAFMR is $1540, landlords will find that the reimbursement under the Section 8 program is slightly below the local market rate. This creates a reimbursement gap of $88 per month ($1628 - $1540).
To summarize, landlords in ZIP 08083 who participate in the Section 8 program should anticipate receiving up to $1540 per month for a two-bedroom rental, plus an annual utility allowance. The reimbursement gap is $88 per month, meaning that landlords would receive $88 less than the local market rate for a two-bedroom apartment when using a Section 8 voucher.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
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.