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 | $1,930 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,500 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,290 |
| 5 Bedrooms | $3,816 |
| 6 Bedrooms | $4,274 |
| 7 Bedrooms | $4,616 |
| 8 Bedrooms | $4,847 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,500 | $361,599 | 0.69% | D |
| 3BR | $2,980 | $537,327 | 0.55% | F |
| 4BR | $3,290 | $791,013 | 0.42% | F |
| 5BR | $3,816 | $996,630 | 0.38% | F |
U.S. Census Bureau data (2024)
In ZIP code 18914, which encompasses Chalfont, Pennsylvania in Bucks County, the economics of Section 8 vouchers are crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $2,320. This figure represents the maximum amount that a Section 8 program will reimburse for rent in this specific area.
The local market rent, as indicated by ZORI (Zillow Observed Rental Index), stands at $3,073 for a similar two-bedroom unit. This means that landlords can charge up to $3,073 if they choose to rent outside of the Section 8 program. However, when dealing with Section 8 tenants, the reimbursement is capped at $2,320 regardless of the actual market rate.
A Section 8 voucher works by covering the difference between the tenant's portion and the total rent. The tenant is typically responsible for paying 30% of their income towards rent. For example, if a tenant's monthly income is $2,000, they would pay $600 towards the rent. The remaining balance, up to the SAFMR limit of $2,320, would be covered by the housing authority. In this scenario, the housing authority would pay the landlord $1,720 ($2,320 - $600).
Utility allowances also play a role in the economics of Section 8. These allowances vary but are generally around $300-$500 per month for a two-bedroom apartment. This allowance is separate from the rent reimbursement and directly benefits the tenant. Therefore, landlords should factor in these utility allowances when considering the overall financial impact of renting to a Section 8 tenant.
To summarize, landlords in ZIP 18914 who participate in the Section 8 program will receive a maximum reimbursement of $2,320 for a two-bedroom apartment. Given that the local market rent is $3,073, there is a significant gap between what landlords could potentially earn and what they will receive through the voucher program. This gap amounts to approximately $753 per month, which is the difference between the ZORI and SAFMR rates. This economic reality means that landlords must carefully consider the financial implications before agreeing to accept Section 8 vouchers for their properties.
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.