Section 8 Fair Market Rent (FMR) for ZIP 08094 - 2027

Investment Score for ZIP 08094

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,460
1 Bedroom	$1,590
2 Bedrooms	$1,900
3 Bedrooms	$2,290
4 Bedrooms	$2,530
5 Bedrooms	$2,935
6 Bedrooms	$3,287
7 Bedrooms	$3,550
8 Bedrooms	$3,728

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,900	$305,934	0.62%	D
3BR	$2,290	$349,593	0.66%	D
4BR	$2,530	$512,513	0.49%	F
5BR	$2,935	$566,029	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08094 (Williamstown, PA) #### Section 8 Voucher Dynamics The Federal Market Rent (FMR) for Williamstown, PA, in 2026 is set at $1840 for a two-bedroom unit, which represents approximately 22.8% of the median household income of $96,699. This indicates that a significant portion of the local population can afford to pay the FMR for a two-bedroom rental unit. However, the actual rent prices in the area are considerably higher. According to Zillow, the median price for a two-bedroom home in Williamstown is $302,071, which translates into a monthly mortgage payment of around $1440 based on a 30-year fixed-rate mortgage at 4.5%. When factoring in property taxes, insurance, and maintenance costs, the total monthly cost could easily exceed the FMR by a substantial margin. For voucher holders, the constraints are clear: they must find landlords willing to accept the voucher amount, which is capped at the FMR. Given the high actual rent prices, it is likely that many voucher holders will struggle to find suitable housing within their budget. The price-to-FMR ratio of 13.7x suggests that the actual market rent is significantly higher than the FMR, making it difficult for voucher holders to secure housing without additional financial support. #### Affordability & Renter Profile Williamstown has a relatively low percentage of renters at 14.5%, indicating that the majority of residents own their homes. This suggests a tight rental market, where demand might be outstripping supply due to limited rental stock. With a high occupancy rate of 95.1%, there is little room for new renters to enter the market without displacing existing tenants. The median household income of $96,699 supports the notion that the area is generally affluent, with most residents able to afford homeownership rather than renting. Given the high median rent prices, the typical renter in Williamstown would likely be a family with a relatively high income, possibly earning above the median household income. Alternatively, they could be individuals or families who have chosen to rent for lifestyle reasons or are waiting to purchase a home. The FMR for a three-bedroom unit is $2220, which is still below the median household income, suggesting that some families might be able to afford renting larger units despite the high market rates. #### Investor Angle From an investor’s perspective, the ZIP code 08094 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1840, but the actual market rent is much higher, at approximately $25,172 per year ($302,071 median home value divided by 13.7). This means that properties rented at the FMR level would likely generate lower cash flows compared to market rents. However, the high occupancy rate and the presence of a stable, affluent population suggest that the rental market is robust. Investors should consider the potential for long-term tenancy and stability, even if initial cash flows are modest. Additionally, the investment grade for this ZIP code would be moderate to high, given the strong economic indicators and the likelihood of consistent demand for rental properties. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the higher FMR for larger units, investors might consider acquiring or developing three-bedroom or four-bedroom properties. The FMR for a three-bedroom unit is $2220, which is still a reasonable rental price compared to the median household income. This could provide better cash flow opportunities while catering to families who might prefer larger living spaces. 2. **Target Affordable Housing Projects**: Since the actual market rents are so much higher than the FMR, there could be a niche for affordable housing projects that cater specifically to Section 8 voucher holders. By building or renovating properties to meet the needs of these renters, investors could fill a gap in the market and potentially benefit from government subsidies and tax incentives designed to promote affordable housing. 3. **Consider Long-Term Rental Strategies**: Given the tight rental market and the high occupancy rate, investors should focus on strategies that ensure long-term tenancy. This includes maintaining good property management practices, ensuring timely repairs, and providing a comfortable living environment. These efforts can help retain tenants and reduce vacancy rates, leading to more stable cash flows over time. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 08094 (Williamstown, PA) is to **Hold**. While the actual rent prices are significantly higher than the FMR, the area's strong economic indicators and high occupancy rate make it a stable market. Investing in larger units or affordable housing projects could yield better returns, but the overall market dynamics suggest that cash flows at the FMR level would be challenging. Investors should carefully evaluate the potential for government subsidies and tax incentives before committing to a project in this ZIP code.

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.