Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 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 | $1,420 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $327,981 | 0.56% | F |
| 3BR | $2,190 | $385,803 | 0.57% | F |
| 4BR | $2,420 | $579,387 | 0.42% | F |
| 5BR | $2,807 | $664,516 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 18073, Pennsburg, PA, involve understanding the balance between the SAFMR (Small Area Fair Market Rent) and the actual local market rents. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1680. This figure represents the maximum amount that a landlord can receive from the housing authority if a tenant uses a Section 8 voucher.
In contrast, the local market rent for a two-bedroom unit in ZIP 18073 is reported to be $1468, based on Census ACS data. This lower figure reflects the average rent charged for similar units in the area.
A landlord should know that the voucher payment is not the only income source. Tenants contribute a portion of their income towards rent, typically around 30% of their adjusted monthly income. If a tenant's contribution plus the utility allowance does not reach the SAFMR of $1680, the landlord will still receive the full SAFMR amount. Conversely, if the tenant's contribution exceeds $1680, the landlord receives the SAFMR amount, and the tenant pays the difference.
The utility allowance varies but is designed to cover the tenant’s electricity, gas, water, and sewer costs. It does not directly affect the SAFMR calculation but is an additional benefit for the tenant and can influence overall rental income expectations.
To illustrate, assume a tenant contributes $500 towards rent and utilities. With the SAFMR at $1680, the landlord would receive the full $1680 from the housing authority, covering both the rent and utilities. However, if the tenant’s contribution were higher, say $900, the landlord would still receive $1680, and the tenant would pay the extra $212 above the SAFMR.
The SAFMR being set for this specific ZIP code means it is tailored to reflect local rental market conditions more accurately than broader county or metro-level rates. This specificity helps ensure that landlords in Pennsburg can find a reasonable balance between the subsidized rate and the local market rate.
In ZIP 18073, given the SAFMR of $1680 and the local market rent of $1468, landlords can expect a surplus of $212 per month on average for a two-bedroom apartment when a tenant uses a Section 8 voucher. This surplus provides a buffer against the lower local market rent and ensures landlords are not financially disadvantaged by participating in the program.
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.