Section 8 Fair Market Rent (FMR) for ZIP 08012 - 2027

Investment Score for ZIP 08012

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	$1,570
1 Bedroom	$1,700
2 Bedrooms	$2,030
3 Bedrooms	$2,420
4 Bedrooms	$2,670
5 Bedrooms	$3,097
6 Bedrooms	$3,469
7 Bedrooms	$3,747
8 Bedrooms	$3,934

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,700	$199,800	0.85%	C
2BR	$2,030	$263,715	0.77%	D
3BR	$2,420	$369,839	0.65%	D
4BR	$2,670	$440,715	0.61%	D
5BR	$3,097	$488,544	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08012 (Grenloch, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Grenloch, PA (ZIP 08012) in 2026 is set at $1960 for a two-bedroom unit. This figure represents 24.6% of the median household income in the area, which stands at $95,451. However, the actual rent for a two-bedroom unit on Zillow is listed at $258,608, indicating a significant gap between the FMR and market rates. The price-to-FMR ratio is approximately 11.0x, suggesting that the actual rental prices are much higher than what the government considers fair market value. This discrepancy places considerable constraints on voucher holders. For instance, a voucher holder would be able to afford only a portion of the actual rental costs, making it challenging to find suitable housing within the ZIP code. The FMR is significantly lower than the market rate, meaning that landlords might be hesitant to accept vouchers due to the potential financial shortfall. #### Affordability & Renter Profile Grenloch has a population of 41,812, with 31.4% of residents being renters. The occupancy rate is quite high at 96.9%, indicating a tight rental market where demand is likely outpacing supply. Given the median household income of $95,451, renters in this area are generally middle-class individuals who can afford higher rents but may struggle to find affordable options within their budget. The high occupancy rate and relatively low percentage of renters suggest that the market is competitive, with limited availability of rental units. This tight market could lead to upward pressure on rental prices, further exacerbating the affordability issue for voucher holders. #### Investor Angle From an investor's perspective, the ZIP code 08012 presents a mixed picture. The FMR for a two-bedroom unit is $1960, but the actual median rental price is $258,608. This means that if an investor were to purchase a property and rent it out at the FMR, they would be operating well below the market rate. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the cost of acquisition and ongoing expenses such as maintenance, taxes, and insurance. Assuming a typical mortgage payment of around $1200 per month for a property costing $258,608 (based on average interest rates and loan terms), an investor would still have to cover additional costs like property taxes, insurance, and maintenance. These combined expenses would likely exceed the $1960 FMR, resulting in a negative cash flow scenario. Given these factors, the investment grade for this ZIP code would be considered low for Section 8-focused investors. The gap between FMR and market rates makes it difficult to achieve positive cash flow, and the competitive nature of the rental market suggests that there may be limited opportunities for acquiring properties at or near FMR levels. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on properties that are closer to the FMR levels. For example, a one-bedroom unit with an FMR of $1650 might be more feasible for achieving positive cash flow, especially if the investor can negotiate lower acquisition costs or find properties with lower ongoing expenses. 2. **Consider Multifamily Units**: Since the FMR for larger units (such as three-bedroom and four-bedroom units) is higher, investing in multifamily buildings could provide better returns. A three-bedroom unit with an FMR of $2350 and a four-bedroom unit with an FMR of $2620 offer more potential for covering expenses and generating profit. 3. **Engage with Local Real Estate Agents**: To navigate the tight rental market effectively, investors should work closely with local real estate agents who have a better understanding of the area. They can help identify properties that are more likely to be rented by voucher holders and provide insights into negotiating with landlords and tenants. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 08012 is to **skip** this market. The significant gap between FMR and actual rental prices, combined with the high occupancy rate and limited rental stock, makes it challenging to achieve positive cash flow. Additionally, the competitive nature of the rental market suggests that finding properties at or near FMR levels will be difficult. Investors looking to enter this market should carefully consider the financial implications and seek alternative ZIP codes with more favorable conditions for Section 8 investments.

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.