Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,690 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
The economics of Section 8 housing in ZIP code 19347, located in Philadelphia, Pennsylvania, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $2000 per month for fiscal year 2024. This SAFMR figure is specifically tailored for this ZIP code, reflecting the local rental market conditions more accurately than a broader county or metropolitan average.
A landlord participating in the Section 8 program receives rental payments from the government on behalf of eligible tenants. The payment structure includes both the tenant's contribution and the government's subsidy, plus utility allowances. Typically, the tenant contributes 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 per month for a tenant in ZIP 19347, the tenant would pay approximately $450 per month ($1500 * 0.3).
The remaining amount, up to the SAFMR, is covered by the Housing Authority. In this case, the government would reimburse the landlord $1550 per month ($2000 - $450). Utility allowances vary but are typically around $200-$300 per month. For simplicity, let’s use a midpoint allowance of $250. This brings the total monthly reimbursement to the landlord to $1800 ($1550 + $250).
This means that for a two-bedroom apartment with a SAFMR of $2000, the landlord will receive a total of $1800 from the voucher program, leaving a reimbursement gap of $200 per month. This gap represents the difference between the SAFMR and the actual reimbursement received by the landlord.
To summarize, landlords in ZIP 19347 can expect a Section 8 voucher to cover a significant portion of the rent for a two-bedroom unit, but there will be a consistent reimbursement gap of $200 per month. This economic reality should be considered when deciding whether to participate in the Section 8 program, as it impacts overall cash flow and profitability.
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.