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 | $1,280 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $232,858 | 0.71% | D |
| 3BR | $1,980 | $368,209 | 0.54% | F |
| 4BR | $2,180 | $447,701 | 0.49% | F |
| 5BR | $2,529 | $523,946 | 0.48% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 08107, which encompasses Collingswood, NJ, within the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA, reveals several key insights. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,600. In comparison, the market rent, as indicated by the Zillow Observed Rental Index (ZORI), stands at $1,527. This suggests that voucher tenants will generally cashflow at the FMR rate, though the difference is slight, indicating that landlords may see marginal profitability depending on their expenses.
The median home value in the area is $343,122. Using this figure, we can derive a rent-to-price ratio, which is an important metric for understanding the local housing market dynamics. A simple calculation shows that the annual rent of $18,324 (based on ZORI) represents approximately 5.3% of the median home value. This ratio suggests a relatively balanced market where rental income is not excessively high compared to property values, implying a stable environment for both renters and owners.
The median Days on Market (DOM) is not applicable (N/A) for this analysis, and the price-cut share is a mere 0.2%. These figures suggest that the real estate market in Collingswood is highly stable, with minimal pressure on sellers to reduce prices. While these metrics do not directly impact the rent-vs-buy decision, they indicate a strong sense of market confidence and stability, which can be beneficial for long-term investment strategies.
In summary, Section 8 investors in ZIP 08107 can expect to achieve positive cash flow with units priced at the HUD FMR, although the margins will be tight. Given the stable market conditions and the favorable rent-to-price ratio, the strongest angle for investors in this area is likely to be stability, offering a secure and predictable investment environment.
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.