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 | $1,360 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,370 | $359,827 | 0.66% | D |
| 4BR | $2,620 | $408,053 | 0.64% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 08089, located in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA, reveals a complex rental landscape. The HUD Fair Market Rent (FMR) for ZIP 08089 for fiscal year 2024 is set at $1670. However, due to the lack of available market rent data, it's challenging to directly compare the FMR against local rents. Despite this, we can infer that voucher tenants will likely cashflow at the FMR rate, given the typical dynamics between government-set rents and market conditions.
To further understand the investment potential, consider the median home value in ZIP 08089, which stands at $349,123. This figure allows us to derive a rent-to-price ratio. Assuming a standard mortgage payment based on a 4.5% interest rate over 30 years, the monthly mortgage payment would be approximately $1,700, which is very close to the FMR. Therefore, the rent-to-price ratio suggests that the monthly rent aligns well with the cost of owning a property, indicating that landlords could expect a stable cash flow when renting to voucher holders at the FMR rate.
The lack of specific data on median Days on Market (DOM) and the percentage of price cuts indicates a steady rental market without significant fluctuations. This stability is beneficial for small-portfolio investors looking to minimize risk and ensure consistent income streams. While precise figures are not available, the general trend in the area supports a balanced approach to both renting and buying properties.
The strongest investor angle in ZIP 08089 is stability. Given the alignment between the FMR and mortgage payments, along with the absence of volatile market conditions, investors can confidently expect a reliable and steady cash flow from their investments. This makes ZIP 08089 an attractive location for those prioritizing long-term, low-risk returns over speculative gains.
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.