Location: Susquehanna County, PA | Metro: Bradford County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
In ZIP code 18818, the Section 8 economics significantly favor landlords due to the disparity between the Subsidized Area Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment, the SAFMR is set at $1,300 per month for fiscal year 2026. This is the maximum amount that the housing authority will pay on behalf of the tenant. However, the actual local market rent for a two-bedroom unit, according to the Census American Community Survey (ACS), is only $942 per month.
The voucher payment process involves several components. The tenant is responsible for paying 30% of their adjusted monthly income towards rent. After this, the housing authority covers the remaining portion up to the SAFMR limit. Additionally, there are utility allowances which can vary but are typically included in the calculation of the total subsidy.
To illustrate, if a tenant's adjusted monthly income is $1,000, they would contribute $300 toward the rent. The housing authority would then cover the difference up to the SAFMR limit of $1,300. In ZIP 18818, where the market rent is $942, the housing authority would subsidize $1,000, making the total reimbursement to the landlord $1,300. This exceeds the local market rent by $358.
The SAFMR being higher than the local market rent creates a surplus for landlords who participate in the program. This surplus is essentially the difference between what the housing authority is willing to pay and what the market dictates as fair rent. In this case, landlords could potentially charge the market rent of $942 and still receive an additional $358 from the housing authority, resulting in a net gain compared to standard market conditions.
However, it’s important to note that landlords must ensure that the rent charged does not exceed the SAFMR, or they risk losing the subsidy. Therefore, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 18818 is a positive $358, meaning landlords receive $358 more than the average market rent when using a Section 8 voucher.
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.