Location: Philadelphia-Camden-Wilmington, PA | Metro: Monmouth-Ocean, NJ HUD Metro FMR Area
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 | $1,110 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,720 | $482,155 | 0.36% | F |
| 4BR | $1,940 | $672,674 | 0.29% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 08562 stands at $103,493, placing it in a relatively high-income bracket. However, when considering the market rate for rent, which is $1,214 according to the Census ACS, the financial landscape becomes more nuanced. A household earning the median income would spend approximately 14.5% of their monthly income on rent at the market rate, which is manageable but tight.
In contrast, the Fair Market Rent (FMR) standard set for ZIP 08562 in fiscal year 2024 is $1,710. This means that if landlords choose to accept Section 8 vouchers, they would be eligible for higher payments, significantly above the current market rate. The discrepancy between the $1,214 market rate and the $1,710 FMR highlights a substantial affordability gap for renters who do not have access to voucher programs.
With 25.1% of the 4,201 population being renters, the competition among landlords is moderate. However, the affordability gap suggests that there could be a significant portion of the rental market that finds the $1,214 rate challenging, especially when considering other living expenses. This scenario creates an opportunity for landlords who can offer units at or near the FMR through voucher acceptance.
The takeaway for landlords is clear: accepting Section 8 vouchers can provide a competitive edge in ZIP 08562. It allows them to charge closer to the FMR of $1,710, which is well above the current market rate. While this strategy requires compliance with additional regulations and paperwork, the financial benefits can outweigh the administrative burdens. Landlords should weigh the advantages of attracting tenants who might otherwise struggle with the cost of living against the stability and predictability of cash-paying tenants.
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.