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 | $1,090 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $325,880 | 0.43% | F |
| 3BR | $1,680 | $400,792 | 0.42% | F |
| 4BR | $1,850 | $467,220 | 0.4% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 08106, Audubon, NJ, reveals a challenging but potentially rewarding investment opportunity. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1440, while the Zillow Observed Rent Index (ZORI) stands at $1725, indicating a significant gap between the two figures.
Voucher tenants in this region will generally cashflow marginally at the HUD FMR rate. This means that landlords can expect to cover their expenses and earn a modest profit, but it's unlikely to yield substantial returns unless they manage to secure higher rents through premium units or other means. The median home value in the area is $377,163, leading to a rent-to-price ratio of approximately 0.45%, which suggests that the rental market is relatively robust compared to the housing market.
Note that the median Days on Market (DOM) and the percentage of homes that experienced price cuts are not available, making it difficult to draw direct comparisons between rent versus buy dynamics. However, the strong rental market implies that there is a demand for affordable housing, which aligns well with the Section 8 program's objectives.
The strongest angle for investors in this market is likely to be stability. Given the consistent demand for affordable housing and the steady stream of rental income, landlords can expect reliable cash flow and minimal risk of vacancy, even if the profit margins are modest.
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.