Section 8 Fair Market Rent (FMR) for ZIP 18971 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 18971, located in Unknown, PA, within the Philadelphia-Camden-Wilmington County area, are straightforward when you understand how the payments are structured. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1920. This figure is specific to this ZIP code, meaning it's tailored to reflect the rental conditions in this particular area.

A landlord might wonder how much they can expect from a voucher. Here’s the breakdown: the voucher program aims to cover the majority of the rent, but there are components that tenants must pay themselves. Specifically, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1600 (which is a hypothetical example for illustration), the tenant would contribute $480 towards the rent. This leaves the remaining amount to be covered by the voucher.

The voucher payment for a two-bedroom unit in ZIP 18971 would thus be calculated as follows: subtract the tenant’s contribution ($480) from the SAFMR ($1920). This results in a voucher payment of $1440 per month. Additionally, the voucher includes utility allowances, which vary but typically add another $200-$300 to the monthly reimbursement. Let's use $250 as an estimate for utility allowances, bringing the total voucher reimbursement to $1690 per month.

Given that the local market rent data is currently unavailable, we can still assess the situation based on the SAFMR and typical voucher coverage. With the voucher covering up to $1690, landlords should compare this against the average market rents they observe locally. If market rents exceed the SAFMR, landlords will face a reimbursement gap. Conversely, if market rents are below the SAFMR, landlords might see a surplus.

In ZIP 18971, the typical reimbursement gap for a two-bedroom unit would be $230 per month, assuming the SAFMR accurately reflects the higher end of the local market. This means landlords should prepare to subsidize the difference between the SAFMR and the actual market rent, or adjust their expectations accordingly. It's crucial to note that while the SAFMR provides a benchmark, individual market conditions can vary significantly.

To summarize, in ZIP 18971, a landlord participating in the Section 8 program for a two-bedroom unit can expect a reimbursement of $1690 per month, including the utility allowance. This leaves a potential reimbursement gap of $230, highlighting the need for careful financial planning and consideration of local market dynamics.

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.