Section 8 Fair Market Rent (FMR) for ZIP 08053 - 2027

Investment Score for ZIP 08053

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	$2,060
1 Bedroom	$2,240
2 Bedrooms	$2,670
3 Bedrooms	$3,180
4 Bedrooms	$3,510
5 Bedrooms	$4,072
6 Bedrooms	$4,561
7 Bedrooms	$4,926
8 Bedrooms	$5,172

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
1BR	$2,240	$216,364	1.04%	B
2BR	$2,670	$297,519	0.9%	C
3BR	$3,180	$463,982	0.69%	D
4BR	$3,510	$616,431	0.57%	F
5BR	$4,072	$683,699	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08053 (Evesham Township, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 08053, as set by HUD for 2026, indicate that a 2-bedroom rental unit should cost around $2,560 per month. However, the actual rents in the area are significantly higher. The Zillow median price for a 2-bedroom home is $292,579, which translates into a monthly rent of approximately $2,438 based on typical mortgage calculations. This means the actual rent is slightly below the FMR but still quite high relative to the median household income of $118,670. The FMR for a 3-bedroom unit is $3,070, and for a 4-bedroom unit, it is $3,430. These figures suggest that voucher holders would face significant constraints in finding affordable housing, particularly in larger units. Given that the median household income is relatively high, the percentage of median income that FMR represents for a 2-bedroom unit is only 25.9%, indicating that voucher holders have some flexibility in their budget. However, this flexibility diminishes for larger units, where the costs exceed a reasonable portion of the median income. #### Affordability & Renter Profile With a median household income of $118,670 and a renter population of 27.8%, Evesham Township appears to be a relatively affluent area. The occupancy rate of 97.1% suggests that the market is tight, with few vacancies available. The high median income supports the notion that renters here are likely to be financially stable, possibly including young professionals, families, and retirees who can afford higher rents. Given the high actual rent prices compared to the FMR, the market is challenging for low-income renters, especially those relying solely on Section 8 vouchers. The price-to-FMR ratio of 9.5x indicates that the rental market is far above what is considered fair market value, making it difficult for voucher holders to find suitable housing. The high demand and limited supply create a competitive environment, where landlords may prefer tenants who can pay market rates rather than those using vouchers. #### Investor Angle From an investor perspective, the ZIP code 08053 presents both opportunities and challenges. The FMRs provide a baseline for rental pricing, but the actual market rents are much higher. For instance, a 2-bedroom unit renting at the FMR of $2,560 would generate a monthly income that is lower than the median market rent of $2,438, adjusted for mortgage payments. This implies that properties rented at FMR levels might not yield substantial cash flow for investors, especially when considering maintenance and management costs. However, the high occupancy rate and median income suggest that there is a strong demand for rental properties, even if they are priced above FMR. Investors could potentially achieve positive cash flow by renting at market rates, although this strategy would exclude many Section 8 voucher holders. The investment grade in this area would likely be high due to the strong economic indicators and low vacancy rates, but the focus on Section 8 vouchers would limit the pool of potential tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high actual rent prices, investors should consider focusing on smaller units such as 1-bedroom apartments. The FMR for a 1-bedroom unit is $2,150, which is still below the median market rent. This approach would allow investors to cater to voucher holders while maintaining a reasonable cash flow. 2. **Consider Location and Amenities**: Properties located in areas with better access to public transportation, schools, and amenities might command higher rents. Investors could leverage these factors to justify charging closer to market rates, thereby increasing cash flow. For example, a 2-bedroom unit with these amenities could be rented at $2,438, which is just under the median market rent. 3. **Diversify Tenant Base**: While targeting Section 8 voucher holders, investors should also consider diversifying their tenant base to include non-voucher holders. This strategy would help mitigate the risk of relying solely on government subsidies and ensure a steady stream of income. #### Bottom Line For Section 8-focused investors, the ZIP code 08053 presents a mixed picture. The high median income and occupancy rate indicate a robust rental market, but the actual rents being well above the FMR make it challenging for voucher holders to find housing. Therefore, the recommendation is to **Hold** investments in this area if already established, but **Skip** new investments unless they can be positioned to attract a diverse tenant base, including non-voucher holders. Focusing on smaller units like 1-bedroom apartments could be a viable strategy, given that the FMR for these units is more aligned with the median market rent.

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.