Section 8 Fair Market Rent (FMR) for ZIP 08021 - 2027

Investment Score for ZIP 08021

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	$1,490
1 Bedroom	$1,620
2 Bedrooms	$1,930
3 Bedrooms	$2,300
4 Bedrooms	$2,540
5 Bedrooms	$2,946
6 Bedrooms	$3,300
7 Bedrooms	$3,564
8 Bedrooms	$3,742

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
2BR	$1,930	$213,072	0.91%	C
3BR	$2,300	$303,138	0.76%	D
4BR	$2,540	$383,357	0.66%	D
5BR	$2,946	$409,391	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08021 (Lindenwold, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 08021, as determined by HUD for 2026, is set at $1870 for a two-bedroom apartment. This figure represents 33.0% of the median household income in Lindenwold, which stands at $68,044. The FMR is designed to reflect the average rent that a family can afford while living in the area, but it often falls short of the actual rental prices in the market. For instance, the Zillow median price for a two-bedroom home in Lindenwold is $207,938, indicating a significant gap between the FMR and the actual market value. The price-to-FMR ratio for a two-bedroom unit is 9.3x, meaning that the median market price is nearly nine times higher than the FMR. This suggests that the actual rental prices in Lindenwold are substantially higher than what the Section 8 vouchers cover. Consequently, voucher holders face significant constraints in finding affordable housing within their budget. They might need to look for properties that are below the market average or consider smaller units where the FMR is lower, such as one-bedroom apartments priced at $1570. #### Affordability & Renter Profile Lindenwold has a high percentage of renters, with 53.3% of households being renters. This indicates a strong demand for rental properties in the area. The occupancy rate of 93.9% further supports the notion that the rental market is relatively tight, with most available units being occupied. Given the median household income and the high renter percentage, the typical renter profile likely includes families who are looking for affordable housing options. However, the high price-to-FMR ratio suggests that affordability is a significant challenge for many residents, particularly those relying on Section 8 vouchers. The median income of $68,044 is not exceptionally high, and with 53.3% of households renting, there is a substantial portion of the population that is sensitive to rental costs. The fact that the FMR for a two-bedroom unit is only $1870, while the actual market price is much higher, means that many renters are paying a larger share of their income towards housing. This tight market dynamic makes it challenging for low-income families to find suitable housing within their budget. #### Investor Angle From an investor’s perspective, the ZIP code 08021 presents both opportunities and challenges. The high occupancy rate and the significant number of renters suggest a robust demand for rental properties. However, the high price-to-FMR ratio of 9.3x indicates that the actual rental prices far exceed the FMR levels. This means that landlords who rely solely on Section 8 vouchers will struggle to achieve positive cash flow due to the discrepancy between the voucher amount and the market rent. To determine if the ZIP code is cash-flow positive at FMR, we must consider the actual rental prices versus the FMR. With the FMR for a two-bedroom unit at $1870 and the Zillow median price at $207,938, the rental income would be significantly lower than the potential mortgage payment or other expenses associated with owning a property in this area. Therefore, it is unlikely that an investor would achieve positive cash flow purely based on FMR rates. The investment grade for this ZIP code is moderate to low due to the high price-to-FMR ratio and the limited ability to attract tenants with Section 8 vouchers. Investors should carefully evaluate the financial feasibility of their investments, considering factors such as property management costs, vacancy rates, and potential appreciation in property values. #### Specific Actionable Insights 1. **Target Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as one-bedroom apartments, which have a lower FMR of $1570. These units are more likely to be within the budget of Section 8 voucher holders, thus increasing the chances of securing long-term tenants. 2. **Consider Mixed-Income Properties**: To balance the financial risks associated with relying solely on Section 8 vouchers, investors could consider developing mixed-income properties. This strategy involves offering a combination of market-rate and subsidized units, allowing the higher rental income from market-rate units to offset the lower income from subsidized units. 3. **Explore Alternative Subsidies**: Investors should explore alternative subsidies beyond Section 8 vouchers. Programs like Low-Income Housing Tax Credits (LIHTC) or other local subsidies might provide additional revenue streams that can help achieve positive cash flow. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 08021 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow purely based on Section 8 vouchers. While there is a strong demand for rental properties, the financial constraints imposed by the FMR levels mean that investors would likely face significant challenges in generating sufficient returns. Instead, investors might want to consider areas with a lower price-to-FMR ratio or explore alternative investment strategies that include a mix of market-rate and subsidized units.

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.