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 | $1,540 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,440 | $405,490 | 0.6% | D |
| 4BR | $2,780 | $567,925 | 0.49% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 08343 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these objections head-on using available data.
Objection 1: Will Fair Market Rent (FMR) of $2380 for ZIP 08343 in fiscal year 2024 cover the mortgage on a $386,645 home?
The answer is nuanced. The FMR of $2380 does not directly correlate with the mortgage amount since it depends on the interest rate and loan term. However, assuming a typical 30-year fixed-rate mortgage with an average interest rate, the monthly payment for a $386,645 home could be around $1700-$1800, which is comfortably below the $2380 FMR. This suggests that FMR should sufficiently cover the mortgage payments, leaving room for other expenses such as property taxes, insurance, and maintenance.
Objection 2: Is there enough renter demand at 4.8%?
The rental vacancy rate of 4.8% indicates a relatively tight market, suggesting strong demand. A lower vacancy rate generally means that there are more renters than available units, leading to higher occupancy rates. For ZIP 08343, this rate points to a favorable environment for landlords, as they can expect less downtime and potentially quicker leasing cycles. However, the data does not provide a complete picture of the tenant pool size or demographic needs, so further research into local population trends and housing preferences would be advisable.
Objection 3: Will vouchers keep pace with $1,515 market rents?
The voucher payment standard is set to align with the FMR but does not guarantee coverage of all market rents. In ZIP 08343, where the market rent is $1,515, landlords should note that the voucher amount may not fully cover this price point. The FMR of $2380 provides a higher ceiling, but individual voucher amounts can vary based on the size of the unit and family income levels. Landlords must be prepared to negotiate and possibly accept a lower rent than the market rate to participate effectively in the Section 8 program. There is no definitive assurance that voucher amounts will increase in line with market rents, so careful financial planning is essential.
In summary, while the data suggests that FMR in ZIP 08343 can cover mortgage costs and indicates a healthy rental market, it does not provide guarantees about future voucher increases or detailed tenant demand specifics. Investors should conduct thorough due diligence beyond these figures to make informed decisions.
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.