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 | $1,240 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $287,531 | 0.56% | F |
| 3BR | $1,910 | $385,382 | 0.5% | F |
| 4BR | $2,100 | $531,532 | 0.4% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 08098, Woodstown, New Jersey, revolve around the Subsidized Average Fair Market Rent (SAFMR) which is specifically tailored for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is set at $1550. This figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will pay toward the rent for a unit in this ZIP code.
Comparatively, the local market rent for a two-bedroom unit, according to the Census American Community Survey (ACS), is $1250. This indicates that the SAFMR is higher than the average market rent, potentially providing a buffer for landlords who might be concerned about the financial viability of accepting vouchers.
A landlord participating in the Section 8 program receives a subsidy that covers the difference between the tenant's portion of the rent and the total rent. The tenant is typically responsible for paying 30% of their adjusted income toward the rent. If we assume an average adjusted income for a tenant in this area, the calculation would proceed as follows:
Let's say a tenant's adjusted income is $1,500 per month. Thirty percent of this income would be $450, which is the amount they would contribute toward the rent. The remaining amount is subsidized by the government up to the SAFMR limit. In this case, the landlord would receive $450 directly from the tenant and up to $1,100 from the government, totaling $1,550.
Note that the SAFMR is set for this specific ZIP code, meaning that landlords in 08098 are subject to a unique rental rate structure compared to other areas. This specificity can help landlords better understand the economic landscape they operate within.
In addition to the base rent subsidy, there are also utility allowances that can vary based on the location and type of dwelling. These allowances are designed to cover the cost of utilities such as electricity, gas, water, and sewerage. However, the exact amount of these allowances is not specified in the provided data. Landlords should refer to local housing authorities for precise utility allowance figures.
Given the SAFMR of $1550 and the local market rent of $1250, landlords in ZIP 08098 can expect a surplus when renting a two-bedroom apartment to a Section 8 tenant. This surplus is the difference between the SAFMR and the market rent, which in this scenario amounts to $300 per month. This additional payment can serve as a significant incentive for landlords to participate in the Section 8 program.
To summarize, landlords in ZIP 08098 can expect a total reimbursement of $1550 for a two-bedroom apartment, with $450 coming from the tenant and the rest from the government. This results in a $300 surplus above the local market rent of $1250, making participation in the Section 8 program financially advantageous.
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.