Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,590 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
The economics of Section 8 housing in ZIP code 18957, located in Philadelphia-Camden-Wilmington County, Pennsylvania, can be dissected into several key components. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1920. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent of a two-bedroom unit in this area.
To understand the actual payment a landlord receives, it's essential to factor in the tenant's portion of the rent and any utility allowances. Typically, tenants are required to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 per month, the tenant would pay around $450 towards the rent. This leaves the remainder, up to the SAFMR limit, to be covered by the voucher.
In addition to the base rent, the Section 8 program also provides utility allowances. These allowances vary but generally cover electricity, gas, water, and sewer costs. For a two-bedroom unit, the utility allowance might range between $200 to $300 per month. Therefore, if we consider a mid-range utility allowance of $250, this amount would be added to the total reimbursement the landlord receives from the voucher program.
The total reimbursement a landlord can expect from a Section 8 voucher for a two-bedroom apartment in ZIP 18957 would then be the sum of the SAFMR and the utility allowance, which equals $2170. However, since the SAFMR is the cap, the landlord will receive either the actual rent (if it is lower than $1920) plus the utility allowance or exactly $1920 plus the utility allowance, whichever is applicable.
Given that the local market rent for a two-bedroom unit is currently unavailable, it's crucial to compare the SAFMR against general market trends in the broader Philadelphia-Camden-Wilmington County area. Generally, if the market rent exceeds the SAFMR, landlords will face a reimbursement gap. Conversely, if the market rent is below the SAFMR, landlords might see a surplus.
In ZIP 18957, landlords should anticipate a reimbursement gap if the local market rent is higher than the SAFMR. This gap would need to be absorbed by the landlord or negotiated with the tenant. If the market rent is lower, landlords could potentially receive more than they charge, creating a surplus. To determine the exact gap or surplus, landlords must know the current market rent for similar units in the area.
In conclusion, for a two-bedroom unit in ZIP 18957, the typical reimbursement under a Section 8 voucher is $1920 for rent plus a utility allowance of approximately $250. Landlords should use these figures to assess their financial position relative to the local rental market.
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.