Section 8 Fair Market Rent (FMR) for ZIP 08038 - 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	$1,580
1 Bedroom	$1,710
2 Bedrooms	$2,040
3 Bedrooms	$2,430
4 Bedrooms	$2,680
5 Bedrooms	$3,109
6 Bedrooms	$3,482
7 Bedrooms	$3,761
8 Bedrooms	$3,949

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

351

Median Household Income

$90,179

Housing Units

159

Renter Percentage

39.2%

Occupancy Rate

96.2%

Renter Occupied

To determine if a landlord should buy in ZIP code 08038 for Section 8 purposes, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1470 cover the debt service on a property?
- Yes: Proceed to the next question.
- No: Do not purchase. The FMR is insufficient to meet financial obligations.
2) Is the market rent above, at, or below the FMR?
- Above: Consider purchasing if the difference between market rent and FMR is not too significant, as you can still attract non-Section 8 tenants.
- At: Purchase is viable if the FMR covers all expenses and provides a profit margin.
- Below: Do not purchase. The lower market rent indicates that the area may not be profitable even for Section 8 tenants.
3) Are there enough renters and days on the market (DOM) to support demand?
- 39.2% renters + N/A-day DOM: It depends on the specifics of the N/A-day DOM. A low DOM suggests high demand, which can be favorable. However, without a specific DOM figure, it's difficult to make a definitive recommendation.

If the FMR of $1470 does not cover the debt service, purchasing is not recommended. If it does cover the debt service, then evaluate the market rent relative to the FMR. If the market rent is above but close to the FMR, you might still find profitability with a mix of Section 8 and non-Section 8 tenants. If the market rent is exactly at the FMR, it could still be a good investment if the rent covers all costs and offers a profit margin. If the market rent is below the FMR, the investment would likely not be profitable.

The percentage of renters at 39.2% indicates a decent level of demand, but the exact number of days on the market (DOM) is critical to understand how quickly properties are being rented out. A low DOM would suggest strong demand, making the investment more attractive. Conversely, a high DOM would indicate weak demand, reducing the appeal of this ZIP code for Section 8 investments.

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.