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 | $1,140 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $423,175 | 0.35% | F |
| 3BR | $1,750 | $450,989 | 0.39% | F |
| 4BR | $1,930 | $569,140 | 0.34% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 19330, Cochranville, PA, in Chester County, are straightforward when you break them down. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1530. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental rates deemed reasonable within Cochranville itself.
Local market rents, however, are considerably lower at $1101 according to the latest Census ACS data. This discrepancy can initially seem puzzling, but it's important to understand how the Section 8 voucher program operates.
A landlord should know that the voucher reimbursement is calculated based on the SAFMR minus the tenant's portion of the rent, which is typically 30% of their income, plus any utility allowances. If a tenant's income is low, their contribution will be less, but the total reimbursement cannot exceed the SAFMR. For instance, if a tenant's portion is $300, the government would cover the remaining up to the SAFMR limit of $1530.
In Cochranville, given the lower market rent of $1101, a landlord might expect a reimbursement closer to this figure. However, the actual reimbursement could be higher, depending on the tenant's income and the utility allowance. Utility allowances vary but are generally around $200-$300 per month.
To illustrate, if a tenant's portion is $300 and the utility allowance is $250, the government would pay the difference to reach the SAFMR cap of $1530. In this case, the landlord would receive $1230 from the government, plus the $300 from the tenant, totaling $1530. This represents a significant surplus over the local market rent of $1101, providing an additional $429 per month for the landlord.
The typical reimbursement gap or surplus for a two-bedroom apartment in Cochranville is therefore a surplus, where landlords can expect to earn above the local market rate. Given the SAFMR of $1530 and assuming a conservative utility allowance of $200 and a tenant portion of $300, the surplus would be approximately $129 ($1530 - $1101 - $300 - $200).
This economic structure benefits landlords by offering a guaranteed, albeit government-regulated, rent that exceeds the local market average. It ensures steady income and minimizes vacancy risks, making it a stable option for property owners in Cochranville.
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.