Section 8 Fair Market Rent (FMR) for ZIP 08020 - 2027
Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,600 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$134,490
Housing Authorities Serving ZIP 08020
A landlord considering ZIP 08020 for Section 8 investments must follow a structured decision-making process. Here's how to approach it:
Step 1: Debt Service Coverage Ratio (DSCR)
- If the Fair Market Rent (FMR) of $2190 for ZIP 08020 in fiscal year 2024 can cover the debt service on a property valued at $435,931, proceed to the next step. Otherwise, the investment is not viable.
Step 2: Market Rent Comparison
- The market rent is currently N/A. If market rent is above the FMR, the property may be more attractive to non-Section 8 tenants. If it's at or below the FMR, Section 8 tenants might be more likely to apply.
Step 3: Demand Assessment
- In ZIP 08020, 3.6% of residents are renters, and the average number of days on the market (DOM) is N/A. This indicates that there is limited rental demand, which could make it difficult to fill vacancies with Section 8 tenants.
Decision Outcomes
- Yes: If the FMR covers the debt service and market rent is at or below FMR, with sufficient demand, investing in Section 8 properties is feasible.
- No: If the FMR does not cover the debt service or if the market rent is significantly higher than the FMR, the investment is not advisable.
- It Depends: If the FMR just barely covers the debt service or if the demand is marginal, the decision hinges on additional factors such as location specifics, property condition, and local Section 8 policies.
Note: The absence of specific market rent and DOM data makes a definitive assessment challenging. It's crucial to gather more detailed local market information before making an investment decision.
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.