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 | $1,270 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,950 | $335,032 | 0.58% | F |
| 4BR | $2,160 | $362,569 | 0.6% | F |
U.S. Census Bureau data (2024)
In ZIP code 08049, the economics of Section 8 housing are defined by the SAFMR (Small Area Fair Market Rent) rates established by HUD. For a two-bedroom apartment in this specific ZIP, the SAFMR for FY 2024 is set at $1540. This figure represents the maximum amount that HUD will reimburse landlords under the Section 8 Housing Choice Voucher program for a unit of this size.
The local market rent, according to Census ACS data, is slightly lower at $1,427 for a similar two-bedroom unit. This means that landlords participating in Section 8 can potentially charge up to $1540 for their units, which is above the average local rent.
A Section 8 voucher works by covering the difference between the tenant's contribution and the total rent. Tenants typically pay 30% of their adjusted income toward rent. If a tenant's monthly income is $2,000, they would contribute $600 (30% of $2,000) towards the rent. The voucher then covers the remaining amount up to the SAFMR limit of $1540.
In addition to the base rent, Section 8 vouchers also include utility allowances. These allowances vary but are designed to help cover the cost of utilities such as electricity, gas, water, and trash collection. The allowance for utilities is separate from the base rent and is calculated based on the type of dwelling and the number of bedrooms. For a two-bedroom unit, the utility allowance can be substantial, adding to the overall reimbursement received by the landlord.
To illustrate, if a landlord charges $1540 for a two-bedroom apartment and the tenant contributes $600, the voucher would cover the remaining $940. If there is an additional utility allowance of $200, the total reimbursement from the voucher to the landlord would be $1140 ($940 + $200).
This leaves a gap between the local market rent and the voucher reimbursement. In ZIP 08049, the typical reimbursement gap for a two-bedroom unit is $113 ($1540 - $1427), assuming no utility costs are included in the local market rent. Landlords must decide whether this gap is acceptable or if they need to adjust their rents to align more closely with the voucher reimbursement rates.
In conclusion, while the SAFMR for ZIP 08049 allows landlords to receive up to $1540 per month for a two-bedroom apartment, the actual reimbursement depends on the tenant's contribution and the utility allowances. Landlords should expect a reimbursement gap of $113, which needs to be managed within their financial planning.
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.