Section 8 Fair Market Rent (FMR) for ZIP 08055 - 2027

Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA

Investment Score for ZIP 08055

Monthly Rent (2BR)

$1,940

Median Price (2BR)

$409,293

1% Rule

0.47%

Annual Yield

5.69%

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	$1,500
1 Bedroom	$1,620
2 Bedrooms	$1,940
3 Bedrooms	$2,310
4 Bedrooms	$2,550
5 Bedrooms	$2,958
6 Bedrooms	$3,313
7 Bedrooms	$3,578
8 Bedrooms	$3,757

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	$1,620	$198,810	0.81%	C
2BR	$1,940	$409,293	0.47%	F
3BR	$2,310	$529,142	0.44%	F
4BR	$2,550	$716,416	0.36%	F
5BR	$2,958	$846,105	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

29,109

Median Household Income

$155,710

Housing Units

11,307

Renter Percentage

11.6%

Occupancy Rate

96.6%

Renter Occupied

1,262

To determine if you should invest in ZIP 08055 (Medford Township, NJ) for Section 8 properties, follow this decision tree:

Step 1: Does the Fair Market Rent (FMR) of $2060 cover the debt service on a $606,645 property?

No: The FMR does not sufficiently cover the debt service. For a property valued at $606,645, typical mortgage payments would exceed $2060, making it financially unfeasible to rely solely on Section 8 funding.

Step 2: Compare the market rent of $1,629 (from Census ACS) to the FMR.

Market rent is below FMR: The market rent of $1,629 is lower than the FMR of $2060. This suggests that Section 8 tenants can afford higher rents than what the general market offers, potentially increasing your rental income above typical market rates.

Step 3: Evaluate the demand for rental properties. In ZIP 08055, 11.6% of residents are renters and the days on market (DOM) average is 24 days.

It depends: With 11.6% of the population renting, there is some demand, but it's relatively low compared to areas with higher percentages of renters. However, the 24-day DOM indicates that rental properties are being leased quickly, suggesting strong local demand despite the smaller percentage of renters. If you can secure a property below the median price and manage it efficiently, the quick turnover could be advantageous.

In summary, while the FMR of $2060 does not clear the debt service on a $606,645 property, the market rent being below this figure means Section 8 tenants might pay more than other renters. The demand for rentals is modest but efficient, with quick leasing times. Therefore, purchasing in ZIP 08055 for Section 8 is only advisable if you can find properties priced significantly below the median value, ensuring the FMR covers the debt service, and you are willing to actively manage your portfolio to take advantage of the quick leasing period.

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.