Location: Chambersburg, PA | Metro: Chambersburg, PA 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 | $1,030 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $225,541 | 0.66% | D |
| 3BR | $1,980 | $259,387 | 0.76% | D |
| 4BR | $2,120 | $328,238 | 0.65% | D |
| 5BR | $2,459 | $341,724 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 17201, Chambersburg, PA, involve understanding the balance between the SAFMR (Small Area Fair Market Rent) and the local market rent, which is represented by ZORI (Zillow Observed Rent Index). For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1190. This figure is specifically tailored for this ZIP code, reflecting the unique rental dynamics of Chambersburg.
The local market rent, as indicated by ZORI, stands at $1,224. This means that landlords in Chambersburg might face a slight challenge in matching their market rents with the SAFMR set by the government for Section 8 vouchers. However, the actual reimbursement received by landlords involves more than just the SAFMR; it includes the tenant's portion of the rent and any utility allowances.
A landlord participating in the Section 8 program should expect the following breakdown:
The tenant is responsible for paying approximately 30% to 40% of their adjusted monthly income towards rent. If we assume an average adjusted monthly income of $1,500 for a Section 8 eligible household, the tenant’s contribution would be between $450 and $600.
The government will cover the difference between the tenant's payment and the SAFMR. In this case, if the SAFMR is $1190 and the tenant pays $450, the government would pay the landlord $740. If the tenant pays $600, the government would pay $590.
Utility allowances vary but typically add a few hundred dollars to the reimbursement. These allowances are designed to help cover electricity, gas, water, and sewer costs. Assuming a utility allowance of $200, the total reimbursement could range from $940 to $800 per month, depending on the tenant's contribution.
In summary, while the SAFMR for a two-bedroom apartment in Chambersburg is $1190, the total reimbursement a landlord receives can be higher when including the tenant's payment and utility allowances. Given the local market rent of $1,224, there is a potential reimbursement gap of around $284 if the landlord charges market rates and the tenant contributes $450. Conversely, if the tenant contributes $600, the gap would be $124. This gap represents the difference between the market rent and the combined SAFMR and utility allowances.
Landlords must weigh these factors against the benefits of guaranteed rent payments and the stability provided by the Section 8 program. The reimbursement gap or surplus will influence decisions regarding participation in the program and setting rental prices.
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.