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 | $1,460 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,250 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $272,541 | 0.69% | D |
| 3BR | $2,250 | $335,986 | 0.67% | D |
| 4BR | $2,480 | $374,366 | 0.66% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 08059, Mount Ephraim, New Jersey, stands at $89,375. Considering the market rent rate of $1,333 according to Census ACS data, it's important to assess whether a typical household can afford these rental costs. A household earning the median income would spend approximately 15% of their gross annual income on rent, which is within the generally recommended threshold of not exceeding 30% of income.
However, when comparing the market rate to the Fair Market Rent (FMR) standard set at $1,610 for the fiscal year 2024, the situation becomes more complex. The FMR represents the upper limit of what HUD considers affordable for low-income households. This means that while the market rate is lower than the FMR, there still exists an affordability gap for those relying on vouchers or facing financial constraints.
With 30.6% of the 5,805 population being renters, the competition among landlords is significant. Landlords must be strategic in pricing their units to attract tenants while ensuring profitability. The difference between the market rate and the FMR suggests that landlords who accept vouchers might have a steady stream of tenants, albeit at a fixed rate that may not align with market trends.
For landlords considering their strategy, accepting vouchers provides a guaranteed tenant base but caps rental income at the FMR level. On the other hand, focusing on cash-paying tenants allows flexibility in setting higher rates, potentially increasing revenue. However, landlords should be aware that the market rate is already below the FMR, indicating a segment of the market where both voucher and non-voucher tenants might find units affordable.
The takeaway is that landlords in ZIP 08059 need to carefully consider their tenant mix. Accepting vouchers ensures occupancy but limits the ability to raise rents beyond the $1,610 FMR. Cash-paying tenants offer more financial upside but require landlords to navigate a competitive market. Balancing these approaches will be key to maintaining a profitable and stable rental portfolio in Mount Ephraim.
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.