Section 8 Fair Market Rent (FMR) for ZIP 19478 - 2027

FY 2027 Fair Market Rent Rates

To understand how Section 8 economics work in ZIP code 19478, which falls under the Philadelphia-Camden-Wilmington County area, it's crucial to break down the components of the Housing Choice Voucher Program. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1920. This figure represents the maximum amount that the housing authority will pay towards rent for a two-bedroom unit.

The SAFMR is determined based on local rental market conditions, aiming to reflect the actual cost of renting a modest apartment in the area. However, the local market rent for ZIP 19478 is currently unavailable, making direct comparisons challenging. Despite this, the SAFMR serves as a benchmark for landlords participating in the program.

A voucher payment consists of two parts: the tenant's contribution and the housing authority's reimbursement. Tenants are typically required to pay 30% of their adjusted income toward rent. For example, if a tenant has an adjusted monthly income of $1600, they would contribute $480 (30% of $1600) towards the rent. The remaining balance is covered by the housing authority up to the SAFMR limit.

In the case of a two-bedroom apartment priced at the SAFMR of $1920, the housing authority would reimburse the landlord $1440 ($1920 - $480). It's important to note that this reimbursement also includes utility allowances, which vary but are generally around $200-$300 per month. Therefore, the total reimbursement to the landlord could be between $1640 and $1720.

If the market rent for a two-bedroom unit exceeds the SAFMR, landlords might face a reimbursement gap. Conversely, if the market rent is below the SAFMR, landlords could benefit from a surplus. Given the SAFMR of $1920 and assuming a conservative utility allowance of $250, landlords can expect a reimbursement of $1670 for a tenant contributing $480. This leaves a potential reimbursement gap if the market rent is higher than $1670.

To conclude, landlords in ZIP 19478 should expect a reimbursement close to the SAFMR of $1920 for a two-bedroom unit, adjusted by the tenant's contribution and utility allowances. With the tenant paying $480 and a utility allowance of $250, the typical reimbursement gap or surplus for a two-bedroom voucher would be $1670. Landlords need to ensure their rent pricing aligns with these figures to avoid financial discrepancies.

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.