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 | $1,870 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,870 | $270,217 | 0.69% | D |
| 3BR | $2,230 | $365,797 | 0.61% | D |
| 4BR | $2,460 | $440,002 | 0.56% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in Pitman, NJ (ZIP code 08071) revolves around the discrepancy between the Fair Market Rent (FMR) set at $1850 for fiscal year 2024 and the actual market rent reported at $1,539 according to the Census ACS. This gap amounts to $311, or approximately 20%, which significantly favors voucher tenants under the Section 8 program.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can capitalize on this situation by leasing properties to voucher holders. The higher FMR rate ensures a consistent and reliable income stream that is above what most open-market renters would pay. This makes it an attractive yield play for property owners looking to maximize returns while ensuring their units remain occupied.
Pitman, NJ has a rental population comprising 25.7% of its residents, indicating a moderate demand for rental properties. With a median home value of $359,317 and a median income of $100,085, the area is relatively affluent, but this does not necessarily translate into high rental prices. The lower market rent suggests that there might be a segment of the population seeking affordable housing options, making Section 8 vouchers particularly relevant.
However, landlords must consider the administrative costs associated with participating in the Section 8 program. These include the time and effort required to manage paperwork, inspections, and compliance with HUD regulations. Despite these overheads, the $311 premium over market rent provides a substantial cushion that can offset these costs and still result in a positive net yield.
To summarize, the gap between the FMR and the market rent in Pitman, NJ creates an opportunity for landlords to secure above-market rents through the Section 8 program. This can lead to a more stable and profitable investment strategy, especially given the local economic conditions and the need for affordable housing options.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.