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 | $1,420 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,540 | $143,484 | 1.07% | B |
| 2BR | $1,840 | $272,498 | 0.68% | D |
| 3BR | $2,190 | $394,455 | 0.56% | F |
| 4BR | $2,420 | $505,037 | 0.48% | F |
| 5BR | $2,807 | $577,642 | 0.49% | F |
U.S. Census Bureau data (2024)
In ZIP code 19027, which encompasses Elkins Park, PA, in Montgomery County, the economics of Section 8 vouchers are structured around the SAFMR (Small Area Fair Market Rent) rates established by HUD. For a two-bedroom apartment in this specific ZIP code, the SAFMR for FY 2024 is set at $1670. This means that landlords who participate in the Section 8 program will receive a rental assistance payment capped at this amount per month.
The local market rent, as indicated by ZORI (Zillow Observed Rent Index), is slightly higher at $2,004. This suggests that landlords may face a shortfall if they choose to participate in the Section 8 program, given that the voucher payment does not cover the full market rent. However, the total compensation received by landlords includes both the tenant's contribution and the utility allowance.
The tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, the tenant's portion might be calculated as follows: a tenant earning $40,000 annually would pay approximately $1,000 monthly (after deductions and adjustments). This leaves the remaining rent covered by the voucher, which in this case would be $670 ($1670 - $1000).
In addition to the rent subsidy, there is also a utility allowance. For ZIP 19027, the utility allowance can vary but is typically around $300-$400 per month. This allowance helps offset the cost of utilities for the tenant and is paid directly to the landlord.
Therefore, when a landlord participates in Section 8 for a two-bedroom unit in ZIP 19027, the total payment received includes the $1670 SAFMR plus the tenant's contribution and any applicable utility allowance. In the example above, the landlord would receive a total of $1970-$2070 ($1670 + $300-$400 utility allowance).
Given that the local market rent is $2,004, this means landlords participating in the Section 8 program for a two-bedroom unit in ZIP 19027 would have a reimbursement gap of about $134-$334 per month. This gap represents the difference between the local market rent and the total compensation received from the voucher and tenant contributions.
To summarize, the SAFMR of $1670 for a two-bedroom apartment in ZIP 19027 is the maximum amount that the Section 8 program will reimburse. Landlords must factor in the tenant's 30% contribution and the utility allowance to determine their net income from a Section 8 tenant. The typical reimbursement gap for a two-bedroom unit in this ZIP code is between $134 and $334, indicating that landlords would need to adjust their expectations accordingly.
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.