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 | $1,410 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,830 | $284,163 | 0.64% | D |
| 3BR | $2,180 | $377,155 | 0.58% | F |
| 4BR | $2,410 | $498,006 | 0.48% | F |
| 5BR | $2,796 | $525,563 | 0.53% | F |
U.S. Census Bureau data (2024)
If a landlord is considering investing in ZIP code 08075 (Delran Township, NJ) for Section 8 properties, they must evaluate several key factors:
1. Does the Fair Market Rent (FMR) of $1860 cover the debt service on a property valued at $380,967?
No. The FMR of $1860 is insufficient to cover the debt service on a property priced at $380,967. Assuming a typical mortgage rate of around 5%, the annual debt service would be approximately $20,000, or $1,667 per month. This is higher than the FMR, indicating that relying solely on Section 8 payments would not be financially viable without additional rental income or subsidies.
2. How does the Zillow Observed Rental Index (ZORI) of $1,983 compare to the FMR?
Market rent is above FMR. With a ZORI of $1,983, the market rent exceeds the FMR of $1860. This suggests that while Section 8 tenants might pay less than market value, there is potential to attract non-Section 8 tenants willing to pay more.
3. Is there sufficient demand in the market?
Yes. In ZIP 08075, 30.2% of residents are renters, and the days on market (DOM) average is 20 days. These figures indicate a healthy rental market with adequate demand. The relatively low DOM suggests that properties are being rented quickly, which is positive for landlords looking to minimize vacancy periods.
Based on these criteria, a landlord should consider the following:
If their primary goal is to invest purely in Section 8 properties, then the answer is no due to the FMR not covering the debt service on a $380,967 property. However, if they can find properties priced lower where the FMR covers the debt service, then it could be a viable investment.
If they are open to a mixed portfolio strategy, including both Section 8 and market-rate rentals, then the answer is yes. The market rent being above the FMR provides an opportunity to diversify their tenant base and potentially increase overall rental income.
In conclusion, ZIP 08075 offers a strong rental market with sufficient demand. However, landlords must carefully evaluate the financial viability of their investments based on the specific property values and their willingness to manage a diverse tenant mix.
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.