Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,640 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 08014 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2340. However, the current market rent data is unavailable, which complicates a direct comparison. Given the high median home value of $294,993 and the lack of reported median income, it's evident that the area is primarily owner-occupied with only 0.0% of residents identified as renters.
In the scenario where the FMR exceeds the market rent, landlords would find themselves in a favorable position. Voucher tenants, who benefit from the Section 8 program, can help stabilize cash flow and provide a consistent yield. The government subsidy ensures that these tenants can afford to pay the rent, even if it's higher than what other non-voucher tenants might be willing to pay in the local rental market.
If the FMR were to fall below the market rent, landlords would face a different challenge. Housing voucher tenants would pay less than the open-market rate, potentially reducing overall profitability. This situation would require careful consideration of property management costs and potential vacancies when assessing whether to accept Section 8 vouchers. Landlords must weigh the benefits of guaranteed rental payments against the lower rates compared to the local market.
Despite the limited availability of current market rent data, the high median home value suggests that the cost of living in the area is substantial. This makes the fixed FMR of $2340 a critical benchmark for landlords and small-portfolio investors. It is important to note that the lack of renters in the area does not necessarily mean there is no demand for rentals; rather, it points to a need for detailed market research to understand the true dynamics of the rental sector.
Data Sources: FMR data from HUD (2027). 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.