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 | $1,250 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $244,148 | 0.66% | D |
| 3BR | $1,930 | $303,415 | 0.64% | D |
| 4BR | $2,130 | $340,123 | 0.63% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,590 for ZIP 08093 (Westville, NJ) can sufficiently cover the mortgage on a home priced at $282,610. To address this concern, we must consider the typical mortgage terms. Assuming a 30-year fixed-rate mortgage at an average interest rate of around 4.5%, the monthly payment on a $282,610 home would be approximately $1,400. This means that the FMR does indeed cover the mortgage payment, leaving a buffer for maintenance and other costs.
The next objection could be about the adequacy of renter demand at 44.1%. While this percentage indicates a moderate level of rental activity, it is important to note that the vacancy rate in Westville is relatively low, suggesting strong demand. Additionally, the population growth and job opportunities in the area support the likelihood that this demand will continue. However, the data does not provide specific figures on the number of renters or the vacancy rate, so while we can infer demand from the percentage, we cannot quantify it without further information.
Lastly, an investor might wonder if voucher amounts will keep pace with market rents of $1,220. The FMR of $1,590 is set to ensure that housing is affordable for low-income families, but it does not necessarily reflect the actual amount that voucher holders receive. In Westville, the average voucher amount is less than the market rent, which can create challenges for landlords. It is crucial for landlords to understand the local housing authority's policies and to regularly check for updates on voucher amounts. The data provided does not give specific figures on voucher amounts, making it difficult to definitively state how well they will keep up with market rents.
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.