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 | $1,800 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,950 | $371,335 | 0.53% | F |
| 2BR | $2,330 | $568,579 | 0.41% | F |
| 3BR | $2,780 | $788,605 | 0.35% | F |
| 4BR | $3,060 | $1,162,512 | 0.26% | F |
| 5BR | $3,550 | $1,892,455 | 0.19% | F |
U.S. Census Bureau data (2024)
In ZIP code 18938, which encompasses New Hope, PA, in Bucks County, the Section 8 program operates under specific economic guidelines. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $2240. This figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will pay for a unit in this area. It's important to note that the SAFMR is tailored specifically to this ZIP code, ensuring that the rental assistance reflects local housing costs accurately.
The local market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $3100 for a two-bedroom apartment. This suggests that landlords who participate in the Section 8 program will receive less than the market rate for their units. However, the total compensation received by landlords includes both the voucher payment and the tenant's contribution towards rent. The tenant is generally responsible for paying 30% of their adjusted income toward the rent. If we assume an average adjusted income of $1500 per month for a tenant, this would translate to a tenant contribution of approximately $450 per month.
Besides the base rent, the Section 8 program also provides utility allowances. These allowances vary but can typically cover a significant portion of heating, cooling, electricity, and water expenses. For a two-bedroom apartment, the utility allowance might range from $200 to $300 monthly, depending on the specifics of the contract and the tenant's needs.
To illustrate, if a landlord charges $2240 for a two-bedroom unit, the total received would be the $2240 voucher payment plus the $450 tenant contribution, totaling $2690. Adding a utility allowance of $250 brings the total to $2940. This leaves a gap of $160 between the market rent ($3100) and the total reimbursement ($2940).
Landlords should be aware that the SAFMR rate is subject to annual adjustments based on changes in the local housing market. Therefore, participating in the Section 8 program requires understanding and accepting these fixed rates and the potential for a modest gap compared to market rents. Despite this, many landlords find the program beneficial due to the guaranteed payment structure and the stability it offers.
In summary, for a two-bedroom apartment in ZIP 18938, the typical reimbursement gap under the Section 8 program is $160 per month. Landlords must consider this when deciding whether to accept 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.