Location: Allentown-Bethlehem-Easton, PA | Metro: Allentown-Bethlehem-Easton, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
The economics of Section 8 in ZIP code 18002, which encompasses parts of Allentown, Bethlehem, and Easton in Pennsylvania, can be straightforward if you understand the key components. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1470. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant with a voucher.
The SAFMR specifically targets this ZIP code, meaning it is tailored to reflect the local rental market conditions. However, the local market rent data is currently unavailable, making it difficult to compare the SAFMR against typical rental rates in the area.
When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent themselves. This amount is usually around 30% of their adjusted income. Additionally, there are utility allowances that can vary but are typically included in the total payment calculation.
To illustrate, let's assume a tenant has an adjusted income that requires them to pay $441 towards the rent ($1470 * 30%). If the utility allowance is $150, then the total reimbursement to the landlord would be $1621 ($441 tenant contribution + $1470 housing authority contribution - $150 utility allowance).
If the market rent for a two-bedroom apartment in ZIP 18002 were higher than $1470, the landlord would face a reimbursement gap. Conversely, if the market rent is lower, the landlord might receive more than the SAFMR, creating a surplus. Since the local market rent data is not available, we cannot determine the exact gap or surplus.
In summary, landlords in ZIP 18002 should expect the housing authority to cover up to $1470 of the rent for a two-bedroom unit, with the tenant contributing an additional percentage based on their income and any utility allowances deducted. To fully assess the financial impact, landlords need to know the local market rent for comparison.
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.