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 | $1,130 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $150,070 | 0.97% | C |
| 3BR | $1,740 | $233,235 | 0.75% | D |
| 4BR | $1,920 | $246,346 | 0.78% | D |
U.S. Census Bureau data (2024)
The ZIP code 08079 in Salem, NJ, presents a complex landscape for both renters and landlords. The median income here stands at $54,641, which is significantly lower than the market rate for rent. At a market rate of $1,775 per month (ZORI), it becomes challenging for households to cover their housing expenses without financial strain.
In comparison, the Federal Market Rent (FMR) for the zip code for fiscal year 2024 is set at $1,470. This is a crucial figure for landlords who are considering participating in the Section 8 program. It represents the amount that the Housing Choice Voucher program will pay towards rent, which is considerably less than the market rate.
Given that 42.5% of the population are renters and the total population is 10,762, the affordability gap between the ZORI and FMR has significant implications. Landlords face stiff competition in finding tenants who can afford the higher market rates. However, those who accept vouchers must be prepared to accept lower rents, which might not reflect the true market value of their properties.
The takeaway for landlords is clear: accepting Section 8 vouchers can stabilize occupancy in a competitive rental market but comes at the cost of reduced rental income. Landlords should carefully consider their options based on the specific needs and goals of their investment portfolio. For those looking to maximize immediate cash flow, focusing on non-voucher tenants may be preferable despite the increased risk of vacancy. Conversely, those willing to accept slightly lower returns for the security of consistent tenancy should seriously consider participating in the voucher program.
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.