Location: Lawrence County, PA | Metro: Lawrence County, PA HUD Metro FMR Area
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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $66,912 | 1.17% | B |
| 2BR | $1,010 | $105,510 | 0.96% | C |
| 3BR | $1,410 | $148,800 | 0.95% | C |
| 4BR | $1,570 | $162,990 | 0.96% | C |
| 5BR | $1,821 | $124,452 | 1.46% | A |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 16101, which includes New Castle, PA, in Lawrence County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2026 is set at $970. This figure represents the maximum amount that the housing authority will pay towards the rental subsidy for a two-bedroom unit in this specific area.
Local market rents, as measured by ZORI (Zillow Observed Rental Index), stand at $1,114 for a two-bedroom apartment. This means landlords can typically charge more than the SAFMR if they are not participating in the Section 8 program.
A voucher payment under Section 8 is calculated based on the SAFMR and the tenant's portion of the rent. The tenant is expected to contribute 30% of their adjusted income towards rent. If a tenant's monthly adjusted income is $1,000, their contribution would be $300. The remaining balance up to the SAFMR of $970 would then be covered by the government subsidy.
In addition to the base rent, there are utility allowances that vary but are generally modest. For example, an average utility allowance might be around $100 per month. Therefore, the total reimbursement a landlord receives for a two-bedroom apartment under Section 8 would be the sum of the government subsidy and the tenant's contribution plus utilities.
If the tenant contributes $300 and the utility allowance is $100, the government subsidy would need to cover the difference between these amounts and the SAFMR. In this case, the government would pay $570 ($970 - $300 - $100).
The reimbursement gap or surplus is the difference between the SAFMR and the actual market rent. In ZIP 16101, the gap is $144 ($1,114 - $970). This means landlords who accept Section 8 vouchers for a two-bedroom apartment in this ZIP code would receive $144 less than the local market rent. Conversely, if a landlord sets the rent below the SAFMR, they would see a surplus.
To summarize, the SAFMR of $970 is the ceiling for government subsidies in ZIP 16101, while the local market rent of $1,114 represents the average rent charged for a similar unit. Landlords must understand that accepting Section 8 vouchers means their revenue will be capped at the SAFMR, leading to a potential reimbursement gap of $144 for a two-bedroom unit.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.