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 | $1,070 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,640 | $363,752 | 0.45% | F |
| 4BR | $1,810 | $393,337 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 08007 within the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA metro reveals several key insights for landlords and small-portfolio investors.
Firstly, does the rent math work? The Fair Market Rent (FMR) for ZIP 08007 in fiscal year 2024 is set at $1420, while the average market rent based on Census ACS data is $970. This indicates that the FMR is significantly higher than the actual market rent, suggesting that landlords might struggle to justify higher rents to tenants based on the current market conditions.
Secondly, is acquisition affordable? The median home value in ZIP 08007 is $345,985. However, the lack of data on days on market (DOM) and the percentage of homes that have been subject to price cuts makes it difficult to assess the current housing market's liquidity and pricing trends. Without these metrics, it's challenging to determine if the median home value reflects an affordable acquisition cost for potential rental properties.
Thirdly, is there tenant demand? With a total population of 5,417 and 44.6% of residents being renters, there is a moderate level of tenant demand. This percentage suggests a significant portion of the population is looking for rental housing, which could be beneficial for landlords seeking steady occupancy rates.
Verdict: While there is a decent tenant demand in ZIP 08007, the discrepancy between the FMR and the actual market rent poses a challenge for landlords aiming to maximize their income. The median home value is high, but without additional data on days on market and price-cut percentages, it's unclear whether acquisitions are currently affordable. Landlords should proceed cautiously, considering both the rent math and the potential costs of acquiring rental properties in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.