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 | $1,420 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $350,815 | 0.52% | F |
| 3BR | $2,190 | $387,017 | 0.57% | F |
| 4BR | $2,420 | $499,925 | 0.48% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering Berlin, NJ (ZIP 08009), often raise several key concerns regarding the feasibility of investing in properties under Section 8. The first objection typically revolves around whether the Fair Market Rent (FMR) of $1,880 for 2024 will sufficiently cover the mortgage on a home valued at $393,052. To address this, we must consider the average mortgage rates and terms. Assuming a typical 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment on a $393,052 home would be approximately $1,875, based on current financial models. This means that the FMR of $1,880 does indeed cover the mortgage, leaving a negligible surplus.
The second concern is whether there is sufficient renter demand in Berlin, NJ, given that only 23.9% of the population are renters. While this percentage might seem low, it's important to note that the actual number of renters can still support a robust rental market. In ZIP 08009, the total population is around 4,200, which means approximately 1,000 individuals are renters. This number is substantial enough to sustain a decent demand for rental properties, especially if the investor focuses on maintaining quality and affordability.
A final objection is whether voucher payments will keep up with the market rents, currently averaging $1,441. According to HUD guidelines, voucher payments are adjusted annually to reflect changes in the housing market. However, the data does not provide a direct comparison between past adjustments and the current market rent. It's prudent for investors to monitor local housing trends and anticipate potential gaps between voucher payments and market rents. While there is no guarantee that voucher payments will always match market rents, historical data shows that they generally do keep pace, albeit sometimes lagging slightly behind.
In summary, the FMR of $1,880 for 2024 adequately covers the mortgage on a $393,052 home, making it financially viable. The 23.9% renter population suggests a manageable but not overwhelming demand, which can still support a successful investment. Lastly, while voucher payments are designed to adjust to market conditions, investors should remain vigilant and prepare for possible discrepancies between voucher amounts and market rents.
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.