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 | $1,360 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $243,699 | 0.72% | D |
| 3BR | $2,100 | $397,237 | 0.53% | F |
| 4BR | $2,310 | $532,838 | 0.43% | F |
| 5BR | $2,680 | $445,453 | 0.6% | D |
U.S. Census Bureau data (2024)
Burlington Township, NJ, with a population of 34,920, is characterized by a relatively low rental rate at 26.9%, indicating that it is predominantly a homeowner community. The median income in the area stands at $98,463, which is notably higher than the national average, reflecting a prosperous demographic. The median home value in Burlington Township is $393,273, suggesting that the housing market is robust and the homes are generally well-valued.
The Federal Market Rent (FMR) for ZIP code 08016 in fiscal year 2024 is set at $1,640, while the actual market rent, as measured by the Zillow Observed Rent Index (ZORI), is approximately $2,100. This discrepancy between the FMR and the market rent highlights the potential challenges for Section 8 tenants seeking accommodation in this ZIP code, as the subsidized rates may not cover the cost of typical market rentals.
Given these economic conditions, Burlington Township, NJ, might be better suited for a hands-on value-add buyer rather than a hands-off voucher operator. The disparity between the FMR and the market rent suggests that landlords who are willing to engage actively with the Section 8 program will need to manage their properties closely to ensure financial viability. This could involve working with local housing authorities to secure additional subsidies or finding ways to reduce operational costs without compromising property quality. For those looking to invest passively, the limited number of rental units and the high market rents relative to the FMR make this ZIP code less attractive for hands-off operations.
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.