Section 8 Fair Market Rent (FMR) for ZIP 18105 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 18105, which covers parts of Allentown-Bethlehem-Easton County in Pennsylvania, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1440 per month for fiscal year 2024. This figure is specific to this ZIP code, reflecting the localized rental market conditions.

A Section 8 voucher program operates under strict guidelines where the government pays a portion of the rent directly to the landlord on behalf of the tenant. The amount paid is determined by the SAFMR, which caps the maximum rent subsidy the government will provide. If the market rent exceeds $1440, the landlord must accept $1440 as the maximum rent subsidy. Conversely, if the market rent is below $1440, the landlord can charge the actual market rate, but only up to the SAFMR limit.

The tenant's portion of the rent is calculated based on their income. Typically, tenants are required to pay 30% of their adjusted monthly income toward rent. For example, if a tenant has an adjusted monthly income of $1000, they would be responsible for paying $300 toward rent. The remaining balance, up to the SAFMR cap, is covered by the government. In this case, for a $1440 SAFMR, the government would pay $1140.

In addition to the base rent, there are utility allowances that can vary depending on the location and type of utilities used. These allowances are meant to cover the cost of utilities such as electricity, gas, water, and sewer. However, since the specific utility allowance for ZIP 18105 is not provided, it's important to note that these allowances do not typically exceed a significant portion of the total rent.

Given the SAFMR of $1440 for a two-bedroom unit, landlords should expect the reimbursement from the government to fill the gap between the tenant's contribution and the SAFMR. If the market rent for a similar property is known, you can calculate the exact reimbursement gap or surplus. Since the local market rent is listed as N/A, landlords should use the SAFMR as a benchmark for setting their rents.

Landlords participating in the Section 8 program in ZIP 18105 can expect a stable source of income, though it might not match the highest market rates. The reimbursement gap or surplus depends on the actual market rent of the property. If the market rent is exactly $1440, then there is no gap or surplus; the landlord receives the full SAFMR amount from the government plus the tenant's contribution. If the market rent is lower, the landlord still receives the full market rent plus any additional utility allowances, ensuring a steady income stream.

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.