Location: Potter County, PA | Metro: Potter County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 16923 are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1,010 per month for fiscal year 2026. This figure represents the maximum amount the Housing Choice Voucher program will pay for rent in this specific ZIP code. However, it's important to note that the local market rent for a similar unit is currently priced at $763 according to the Census ACS data.
A landlord participating in the Section 8 program receives reimbursement based on the SAFMR, but the actual payment involves several components. First, the tenant is required to contribute a portion of their income towards rent, typically around 30%. If we assume an average tenant income that aligns with the program guidelines, the tenant might pay approximately $300 to $400 towards rent, depending on their specific income level.
In addition to the rent contribution, the voucher also covers utility allowances. These allowances vary by location and type of utilities, but they generally range from $200 to $300 per month. Therefore, the total reimbursement a landlord can expect from the voucher program would be the sum of the tenant's rent contribution and the utility allowance, up to the SAFMR limit of $1,010.
To illustrate, if a tenant contributes $350 towards rent and the utility allowance is $250, the total reimbursement from the voucher program would be $600. This leaves a landlord with a reimbursement gap of $410 ($1,010 - $600), which is the difference between the SAFMR and the actual payment received from the voucher program.
Given that the local market rent is $763, landlords may find themselves with a surplus of about $247 per month when comparing the SAFMR reimbursement limit to the market rate. This surplus allows landlords to potentially earn more than the typical market rent for a two-bedroom unit in ZIP code 16923.
It's crucial for landlords to understand these economic dynamics to make informed decisions about participating in the Section 8 program. By knowing the reimbursement limits and the local market rates, landlords can better manage their expectations and financial planning for rental units in this ZIP code.
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.