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 | $1,770 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,730 | $347,435 | 0.79% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 08067 might have several concerns regarding the feasibility of renting out properties under the Section 8 program. Let's address these objections with the available data.
Objection 1: Will FMR $2080 (zip FY 2024) cover the mortgage on a $327,779 home?
The Fair Market Rent (FMR) for ZIP 08067 in fiscal year 2024 is set at $2080. To determine if this will cover the mortgage on a $327,779 home, we must consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment would be approximately $1,773. This means that the FMR of $2080 would indeed cover the mortgage, leaving a surplus of $307 per month before other expenses such as property taxes, insurance, and maintenance are considered.
Objection 2: Is there enough renter demand at 13.3%?
The rental demand in ZIP 08067 stands at 13.3%. While this percentage is relatively low, it does indicate a presence of renters seeking housing. However, the data alone does not provide a comprehensive view of the local rental market dynamics. It's important to note that the percentage of renters can vary significantly based on seasonal factors, local economic conditions, and the availability of affordable housing. To get a clearer picture, additional research on local vacancy rates and tenant turnover would be beneficial.
Objection 3: Will vouchers keep pace with $1,839 market rents?
The voucher amount of $2080 is designed to meet the fair market rent standards but does not directly correlate with the actual market rents of $1,839. The voucher covers the entire rent amount, ensuring that landlords receive the full market rent. Therefore, landlords should not worry about the voucher keeping pace with market rents, as long as the property is priced within the voucher limits. If market rents exceed the voucher amount, adjustments may need to be made to ensure compliance with HUD regulations.
In conclusion, while the data provides some assurance regarding the coverage of mortgages and the existence of rental demand, it is crucial to conduct further analysis on local market conditions and trends to make informed investment decisions in ZIP 08067.
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.