Location: Somerset County, PA | Metro: Bedford County, PA
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 | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $175,279 | 0.58% | F |
| 3BR | $1,350 | $206,247 | 0.65% | D |
| 4BR | $1,570 | $243,843 | 0.64% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 15530, which includes Berlin, PA, in Somerset County, can be explained as follows. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $970. However, the local market rent, based on Census ACS data, is lower at $734.
A landlord participating in the Section 8 program receives a voucher payment that covers most of the tenant's rent, but not all. The tenant is responsible for paying a portion of the rent, typically around 30% of their income. For simplicity, let's assume the tenant's portion is $300 per month, which is common in many cases. This leaves the landlord with the remaining balance to be covered by the voucher.
The voucher payment will not exceed the SAFMR of $970. Therefore, if the total rent is higher than $970, the landlord will receive only up to $970 minus any utility allowances. Utility allowances are additional payments made by the housing authority to cover utilities, which can vary but are often around $200 to $300 per month. Assuming an average utility allowance of $250, the total reimbursement a landlord might expect would be $970 - $300 (tenant's share) = $670 plus the utility allowance, totaling $920.
In ZIP 15530, where the market rent is $734, the landlord would receive the tenant's portion of $300 and the voucher payment adjusted to the market rate, which would be $734 - $300 = $434, plus the utility allowance. This results in a total reimbursement of $784 per month.
Given these numbers, the landlord would have a surplus of $214 per month ($784 - $734) if they charge exactly the market rent. If they charge the SAFMR rate of $970, the landlord would face a reimbursement gap of $186 per month ($970 - $784).
To summarize, landlords in ZIP 15530 should understand that while the SAFMR is $970, the actual market rent is $734. Voucher payments will cover the difference between the tenant's portion and the market rent, plus utility allowances. Charging above the market rent will result in a reimbursement gap, while charging the market rent or below will lead to a surplus.
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.