Location: State College, PA | Metro: State College, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,410 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 16802 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $1450 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local housing market conditions accurately.
To understand what a voucher actually pays, consider the following breakdown. The tenant is responsible for paying 30% of their adjusted income towards rent. For simplicity, let's assume an average adjusted income of $1800 per month for a household eligible for a Section 8 voucher. In this case, the tenant would pay $540 towards rent ($1800 * 0.30).
The remaining amount, up to the SAFMR of $1450, is paid by the housing authority. However, there are additional considerations such as utility allowances which can vary but typically range from $200 to $300 per month depending on the season and the number of occupants. Let's use an average utility allowance of $250 for this example.
This means that if a landlord rents out a two-bedroom apartment in ZIP 16802 for the SAFMR of $1450, they will receive $910 from the housing authority ($1450 - $540), plus an additional $250 for utilities, totaling $1160 per month. The difference between the SAFMR and the total received by the landlord is the reimbursement gap.
In ZIP 16802, the reimbursement gap for a two-bedroom apartment would be $290 per month ($1450 - $1160). This means landlords would need to cover an additional $290 to meet the SAFMR, or they could potentially rent below the SAFMR to avoid this gap. It's important to note that while the SAFMR sets a benchmark, the actual rental price can fluctuate based on the tenant's income and other factors.
Landlords should also be aware that the SAFMR does not include other costs such as property management fees, maintenance, or vacancy rates. These must be accounted for separately when determining the overall financial viability of renting to Section 8 tenants.
In conclusion, the typical reimbursement for a two-bedroom apartment in ZIP 16802 under a Section 8 voucher is $1160 per month, leaving a reimbursement gap of $290. Landlords must carefully weigh these numbers against their own financial needs and the local rental market dynamics.
Data Sources: FMR data from HUD (2027). 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.