Location: Schuylkill County, PA | Metro: Lebanon, 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 | $940 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $213,066 | 0.6% | F |
| 3BR | $1,620 | $263,305 | 0.62% | D |
| 4BR | $1,770 | $335,377 | 0.53% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 17963, Pine Grove, PA, within Schuylkill County, operate based on specific financial metrics that landlords need to understand. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1030. This SAFMR is the maximum amount that the housing authority will pay towards the rent for a unit in this specific ZIP code. It's important to note that the local market rent for a two-bedroom unit, according to the Census ACS, is currently at $931.
A Section 8 voucher works by covering the difference between what a tenant can afford and the actual rent. The tenant's contribution is typically 30% of their adjusted income. If the tenant's share is below the SAFMR, the housing authority makes up the difference. However, if the total rent exceeds the SAFMR, the landlord must reduce the rent to match the SAFMR.
To walk through an example, let's assume a tenant's monthly adjusted income is $1500. Their contribution would be 30% of this, which is $450. The housing authority would then cover the remaining amount up to the SAFMR of $1030. This means the housing authority would pay $580 towards the rent. Utility allowances are separate and do not affect the rent payment directly.
In ZIP 17963, the SAFMR is higher than the local market rent, which means landlords could potentially receive the full SAFMR of $1030 per month for a two-bedroom unit. This creates a surplus situation where the landlord receives more than the average market rent. However, the landlord must ensure that the rent does not exceed the SAFMR, even if they could charge more in the open market.
The typical reimbursement gap or surplus for a two-bedroom voucher in this ZIP code is a surplus of $99 per month. This surplus is calculated by subtracting the local market rent of $931 from the SAFMR of $1030. Landlords should consider this when setting their rents to remain competitive yet compliant with Section 8 requirements.
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.