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 | $1,450 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,240 | $489,034 | 0.46% | F |
| 4BR | $2,470 | $725,522 | 0.34% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 08056 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rents. The FMR for ZIP 08056 in fiscal year 2024 is set at $2080. However, the current market rents in the area suggest a range that starts above this figure, with the lowest market rent listed being $1,149 per month. This indicates that the FMR is lower than the market rent, creating a scenario where landlords might face a financial shortfall if they accept Section 8 tenants.
The discrepancy is evident when comparing the FMR to the market rents. For instance, a two-bedroom apartment in the nearby ZIP code 08020 is listed for $1,700 per month, which is $620 higher than the FMR. This represents a 29.8% increase over the FMR. Similarly, a four-bedroom apartment in ZIP 08066 is priced at $2,450, which is $370 above the FMR, representing a 17.8% premium.
In ZIP 08056, where the median home value is $602,562 and the median income is $171,389, the low percentage of renters (0.0%) suggests a predominantly owner-occupied market. This context further underscores the potential challenges landlords may face by accepting voucher tenants at rates below the open-market level. The cost of housing voucher tenants below market rates can be substantial, given the higher end of market rents found in nearby areas.
To summarize, the gap between the FMR and market rents means that landlords accepting Section 8 vouchers will receive lower rents compared to the open market. This could result in reduced yields, making it less attractive for landlords who aim to maximize their returns. Landlords should carefully consider these figures before deciding to participate in the Section 8 program.
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.