Location: Wayne County, PA | Metro: Pike County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
U.S. Census Bureau data (2024)
In ZIP code 18460, the economics of Section 8 housing involve understanding the difference between the local market rent and the federal guidelines for rental assistance. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1650 per month for fiscal year 2024. This figure represents the maximum amount that HUD (Department of Housing and Urban Development) will reimburse landlords for renting a unit under the Section 8 program.
The local market rent, according to Census ACS data, stands at $1,071 for a two-bedroom unit. This is the average rent charged in the private market for similar units. Landlords might wonder how these figures translate into actual income when a tenant uses a Section 8 voucher.
A Section 8 voucher works by covering the difference between the tenant's contribution and the total rent. The tenant is expected to pay 30% of their adjusted income towards rent. For instance, if a tenant's monthly adjusted income is $2,000, they would contribute $600 toward the rent. The remainder, up to the SAFMR limit of $1650, would be covered by the voucher.
Utility allowances are also factored into the equation. These allowances vary but typically range from $200 to $300 per month depending on the size of the unit and local energy costs. This allowance is meant to cover electricity, gas, water, and sewer costs, and it does not come directly from the tenant's income but is part of the overall reimbursement package from HUD.
To illustrate, if a landlord charges $1650 for a two-bedroom unit and the tenant contributes $600, then the voucher would cover the remaining $1050. If the utility allowance is $250, the landlord receives $1300 in total reimbursement ($600 from the tenant and $700 from the voucher).
The typical reimbursement gap or surplus in ZIP 18460 can be calculated by comparing the SAFMR to the local market rent. In this case, the SAFMR is $1650, while the market rent is $1,071. This means landlords participating in the Section 8 program for a two-bedroom unit in ZIP 18460 could see a surplus of $579 per month, assuming they charge the market rent. However, if they choose to charge the full SAFMR rate, they would still receive the full amount from HUD plus the tenant's contribution, ensuring a steady income stream that aligns with the federal guidelines.
This surplus offers landlords a financial buffer, making Section 8 participation attractive even though the reimbursement rates are federally capped. It allows them to maintain properties at a standard that meets both HUD requirements and local market expectations without sacrificing profitability.
Data Sources: FMR data from HUD (2027). 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.