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 | $1,670 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,160 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,160 | $249,933 | 0.86% | C |
| 3BR | $2,570 | $342,934 | 0.75% | D |
| 4BR | $2,840 | $371,256 | 0.76% | D |
U.S. Census Bureau data (2024)
ZIP code 08065, located in Palmyra, New Jersey, encompasses a residential area with a total population of 7,485. Approximately 28.6% of residents are renters, indicating a modest demand for rental properties. The median household income in this area stands at $89,574, reflecting a relatively affluent community. The median home value is $309,124, which suggests a mix of modest and middle-class homes.
The economic landscape for landlords and small-portfolio investors is shaped by the rental dynamics in the area. The Fair Market Rent (FMR) for ZIP 08065, as determined by HUD for fiscal year 2024, is set at $2,050. This figure contrasts with the actual market rent, which according to the Census Bureau's American Community Survey (ACS), averages $1,696. This discrepancy implies a potential opportunity for landlords who can leverage the higher FMR rates offered by the government through the Section 8 program to increase their rental income.
The practical implications for investors hinge on whether they prefer a hands-off approach or a more active role in property management. For those inclined towards a hands-off strategy, ZIP 08065 offers a stable environment where the Section 8 program can ensure steady, government-backed rental income. The relatively low percentage of renters and the affluent median income suggest a market that could be sensitive to the perceived stigma of Section 8 housing. However, for hands-on operators looking to add value, there is an opportunity to improve properties and potentially command higher rents, especially given the gap between FMR and market rates.
In summary, ZIP 08065 presents a balanced scenario for Section 8 investors. It offers a stable income stream for those who seek it, while also providing a chance for hands-on operators to enhance property values and rents above the market average. The key to success lies in understanding the local market nuances and tailoring investment strategies accordingly.
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.