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 | $1,350 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $307,839 | 0.57% | F |
| 3BR | $2,070 | $373,976 | 0.55% | F |
| 4BR | $2,290 | $434,608 | 0.53% | F |
| 5BR | $2,656 | $478,703 | 0.55% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 19012, Cheltenham, PA, are critical for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1540. This figure represents the maximum amount that the federal government will reimburse landlords under the Section 8 Housing Choice Voucher program.
Local market rents in ZIP 19012, according to the Census ACS, run slightly higher at $1622. This indicates that landlords might face a small challenge in matching their rental rates to both the SAFMR and the local market conditions.
A voucher payment is composed of two main parts: the tenant's portion and the utility allowance. Typically, tenants contribute approximately 30% of their adjusted income towards rent. For a two-bedroom unit priced at the SAFMR of $1540, if the tenant’s portion is exactly 30%, it would be around $462. The remaining balance, which is $1078, is then covered by the Section 8 program. However, this does not account for utilities, which can add an additional amount to the reimbursement.
The utility allowance varies based on the number of bedrooms and other factors but generally aims to cover a reasonable cost of utilities. In the case of a two-bedroom apartment, the utility allowance can range from $200 to $300 per month. Therefore, the total reimbursement a landlord can expect from the Section 8 program for a two-bedroom unit would be the $1078 plus the utility allowance, bringing the total to roughly $1278 to $1378 per month.
This means there is a reimbursement gap when compared to the local market rent. If we take the average utility allowance as $250, the total reimbursement would be $1328. The difference between the local market rent of $1622 and the reimbursement of $1328 leaves a gap of $294 per month. This gap must be absorbed by the landlord, making it crucial to manage expenses effectively to maintain profitability.
In summary, landlords in ZIP 19012 should anticipate a reimbursement of approximately $1328 for a two-bedroom apartment under the Section 8 program, given a standard utility allowance. This results in a monthly gap of $294 when compared to the local market rent of $1622, representing the financial reality they must prepare for.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.