Section 8 Fair Market Rent (FMR) for ZIP 19701 - 2027

Investment Score for ZIP 19701

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,760
1 Bedroom	$1,900
2 Bedrooms	$2,270
3 Bedrooms	$2,700
4 Bedrooms	$2,980
5 Bedrooms	$3,457
6 Bedrooms	$3,872
7 Bedrooms	$4,182
8 Bedrooms	$4,391

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,270	$281,817	0.81%	C
3BR	$2,700	$356,812	0.76%	D
4BR	$2,980	$517,739	0.58%	F
5BR	$3,457	$623,358	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19701 (Bear, PA) #### Section 8 Voucher Dynamics In Bear, PA (ZIP code 19701), the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,220 per month for the year 2026. This figure represents 24.0% of the median household income of $111,198, which indicates that it is relatively affordable for the average resident. However, the actual rent for a two-bedroom unit can be significantly higher, as evidenced by the Zillow median price of $282,641, translating to a monthly rent of approximately $1,178 based on a typical mortgage payment. The price-to-FMR ratio of 10.6x suggests that the actual rental prices are substantially higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing. The voucher amount of $2,220 might not cover the actual rent in many cases, especially if landlords are charging closer to the market rate. #### Affordability & Renter Profile The population of Bear, PA, stands at 42,984, with 19.5% of residents being renters. Given the occupancy rate of 97.2%, it is clear that the rental market is quite tight, with very few vacant units available. The median household income of $111,198 is relatively high, indicating that most residents have the financial means to afford market-rate housing. However, for those who rely on Section 8 vouchers, the high market-to-FMR ratio presents a significant challenge. The majority of renters in Bear, PA, likely fall into the lower-middle-income bracket, where they would benefit from subsidized housing but struggle to find units that accept their vouchers due to the high demand and limited supply. #### Investor Angle From an investor's perspective, the ZIP code 19701 offers mixed opportunities. While the median household income is high, suggesting strong demand for housing, the tight rental market and the high price-to-FMR ratio indicate that properties rented at FMR levels might not generate substantial cash flow. For instance, a two-bedroom unit renting at $2,220 per month would need to compete with market rates that could be much higher. Investors looking to maximize returns might find it difficult to achieve positive cash flow if they are strictly adhering to FMR guidelines. The investment grade in this area would likely be moderate to low for Section 8-focused investors, given the challenges in finding tenants willing to pay market rates and the potential difficulty in attracting voucher holders due to the high cost of living. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should consider acquiring properties that are priced below the FMR to ensure they can attract both market-rate and Section 8 tenants. For example, a two-bedroom unit priced at $2,000 per month might be more attractive to voucher holders and still competitive in the market. 2. **Target Multi-Family Properties**: Given the high occupancy rate, multi-family properties could offer better opportunities for cash flow. These properties typically have lower vacancy rates and can spread the risk across multiple units. Investors should look for multi-family buildings where the average rent per unit is close to the FMR but still within reach of local incomes. 3. **Consider Renovations to Increase Value**: Since the market-to-FMR ratio is high, properties that are well-maintained and renovated could command higher rents. An investor might consider purchasing a property at or slightly above the FMR, then investing in renovations to increase its value and market appeal, thereby potentially achieving positive cash flow. #### Bottom Line Given the high median household income and tight rental market, ZIP code 19701 (Bear, PA) presents a challenging environment for Section 8-focused investors. The high price-to-FMR ratio makes it difficult to find properties that are both affordable and profitable. Therefore, the recommendation for investors is to **Skip** this market unless they can identify unique opportunities such as underpriced properties or multi-family buildings that can be effectively managed to meet both market and FMR requirements. If investors choose to enter this market, they should focus on units priced below FMR and consider strategic renovations to enhance profitability.

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.