Section 8 Fair Market Rent (FMR) for ZIP 08054 - 2027

Investment Score for ZIP 08054

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	$1,980
1 Bedroom	$2,140
2 Bedrooms	$2,560
3 Bedrooms	$3,050
4 Bedrooms	$3,360
5 Bedrooms	$3,898
6 Bedrooms	$4,366
7 Bedrooms	$4,715
8 Bedrooms	$4,951

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,140	$224,876	0.95%	C
2BR	$2,560	$299,018	0.86%	C
3BR	$3,050	$431,011	0.71%	D
4BR	$3,360	$655,068	0.51%	F
5BR	$3,898	$760,502	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08054 (Mt Laurel Township, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Mt Laurel Township, PA, is set by HUD for 2026 and ranges from $1900 for a zero-bedroom unit to $3290 for a four-bedroom unit. For a two-bedroom unit, the FMR is $2460, which represents 24.8% of the median household income in the area. This indicates that the FMR is significantly lower than the median income, suggesting that voucher holders have some flexibility in terms of rent but still face significant constraints. Actual rents in the area can be gauged by comparing the FMR to the Zillow median price for a two-bedroom unit, which is $294,553. The price-to-FMR ratio for a two-bedroom unit is approximately 10.0x, meaning that the median home value is ten times the FMR for renting a similar-sized unit. This high ratio suggests that actual rental prices could be higher than the FMR, potentially making it challenging for voucher holders to find suitable housing within their budget. #### Affordability & Renter Profile The population of Mt Laurel Township is 46,026, with a median household income of $118,802. Approximately 23.0% of the residents are renters, indicating a relatively small rental market compared to the overall population. The occupancy rate stands at 96.5%, suggesting that the rental market is quite tight, with limited availability of units. Given the median income and the FMR, the typical renter in this area would likely have a household income above the median, as the FMR represents only a fraction of the average income. However, the high price-to-FMR ratio implies that even those with higher incomes might struggle to find affordable rental options, especially if they are looking for larger units like three or four bedrooms. #### Investor Angle From an investor’s perspective, the key question is whether the rental market in ZIP 08054 can support cash flow-positive properties at the FMR levels. Given the high median home values and the tight rental market, it is likely that actual rental prices exceed the FMR. For instance, the Zillow median price for a two-bedroom unit is $294,553, which is about $10.0x the FMR of $2945.53 per month. However, the FMR for a two-bedroom unit is $2460, which is considerably lower than the implied rental price based on the median home value. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the potential rental income versus the cost of acquiring and maintaining the property. Assuming a conservative estimate of 1% of the home value as monthly rent, a two-bedroom unit would generate around $2945.53 in rent. At the FMR of $2460, an investor would need to ensure that the acquisition costs, maintenance, and other expenses do not exceed this amount. Considering the high median home value, the acquisition costs alone would likely make it difficult to achieve cash flow positivity at the FMR level. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on smaller units such as one-bedroom or zero-bedroom apartments, where the FMR is lower ($2070 and $1900 respectively). These units are more likely to be rented out by voucher holders and may offer better cash flow opportunities given the tight market conditions. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and the relatively small percentage of renters, multi-family properties could be a better investment option. These properties allow for diversification of tenants and can spread the risk across multiple units, potentially increasing the chances of finding tenants willing to pay the FMR. 3. **Explore Subsidized Housing Programs**: Since the FMR is significantly lower than the actual rental prices, investors might want to explore additional subsidized housing programs beyond Section 8 vouchers. This could include Low-Income Housing Tax Credits (LIHTC) or other local government assistance programs that can help bridge the gap between FMR and actual rental prices. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP 08054 is to **Skip** this market. The high price-to-FMR ratio and the tight rental market suggest that actual rental prices far exceed the FMR, making it difficult to achieve cash flow positivity at the FMR level. Additionally, the limited number of renters and the high median home value indicate that there may be insufficient demand for properties priced at the FMR. Therefore, investors should look for markets with more favorable conditions for Section 8 vouchers.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.