Section 8 Fair Market Rent (FMR) for ZIP 08020 - 2027

Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA

Investment Score for ZIP 08020

N/A

Monthly Rent (2BR)

$2,060

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$1,600
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

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
3BR	$2,460	$423,011	0.58%	F
4BR	$2,710	$556,664	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,480

Median Household Income

$134,490

Housing Units

1,009

Renter Percentage

3.6%

Occupancy Rate

100.0%

Renter Occupied

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). 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.