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 | $1,210 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $278,361 | 0.56% | F |
| 3BR | $1,870 | $351,809 | 0.53% | F |
| 4BR | $2,060 | $398,086 | 0.52% | F |
| 5BR | $2,390 | $455,329 | 0.52% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 08109, Merchantville, NJ, are defined by the SAFMR (Small Area Fair Market Rent) rates set specifically for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is $1620. This is the maximum amount that a Section 8 voucher will cover, which is slightly higher than the local market rent of $1,604 as indicated by ZORI (Zillow Observed Rent Index).
A landlord participating in the Section 8 program receives reimbursement based on the SAFMR minus the tenant's portion of the rent. The tenant is typically required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area is around $1,800 per month, then the tenant would pay approximately $540 towards rent. Therefore, the landlord would receive $1,620 - $540 = $1,080 directly from the government.
In addition to the base rent, landlords also receive utility allowances if applicable. These allowances vary but can add up to a few hundred dollars to the total reimbursement. For simplicity, let’s say the utility allowance is $200 per month. Thus, the total reimbursement a landlord could expect would be $1,080 (rent) + $200 (utilities) = $1,280 per month.
To break it down further:
This means there is a reimbursement gap between the SAFMR and the actual market rent. In this case, the gap is $1,620 (SAFMR) - $1,604 (ZORI) = $16. While this gap is relatively small, it is important to note that landlords are still receiving a substantial portion of the rent from the government, and the SAFMR rate provides a cushion against market fluctuations.
However, when factoring in the tenant’s payment and utility allowances, the landlord would have a reimbursement gap of $1,604 (local market rent) - $1,280 (total reimbursement) = $324 per month. This is the amount the landlord must make up from other sources to break even. Alternatively, if the local market rent were lower than the SAFMR, the landlord would see a surplus.
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.