Location: Lancaster, PA | Metro: Lancaster, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
The economics of Section 8 in ZIP code 17605, located in Lancaster County, Pennsylvania, revolve around the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is $1330. This figure represents the maximum amount that the government will pay towards the rent of a Section 8 voucher holder living in this ZIP code.
Landlords often wonder exactly how much they can expect to receive from a voucher. Here's a breakdown: the tenant is responsible for paying 30% of their adjusted income toward rent. The government then covers the difference between the tenant’s payment and the SAFMR, up to $1330. Utility allowances are also provided, but these vary based on the specific voucher and the number of bedrooms. For a two-bedroom unit, the allowance typically covers part of the utilities, but the exact amount is not specified in the provided data.
To illustrate, if a tenant’s 30% contribution is $400, the government would pay the remaining $930 to reach the $1330 SAFMR cap. If the tenant’s 30% contribution exceeds the SAFMR, such as $1400, the landlord would still only receive a total of $1330, meaning the tenant must cover the excess out-of-pocket.
The reimbursement gap or surplus depends on the actual market rent compared to the SAFMR. Since the local market rent is not available, we cannot calculate the precise gap or surplus. However, if the market rent were higher than $1330, landlords would face a shortfall and need to consider other sources of revenue or accept a lower rental income. Conversely, if the market rent is lower, landlords might benefit from a surplus when accepting Section 8 vouchers.
In summary, landlords in ZIP 17605 should expect a reimbursement of up to $1330 for a two-bedroom apartment under the Section 8 program. The actual amount received will depend on the tenant’s income and their 30% contribution. Without specific market rent data, it's unclear whether there will be a surplus or a gap, but understanding the SAFMR and how it works is crucial for managing expectations and financial planning.
Data Sources: FMR data from HUD (2027).
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.