Location: Philadelphia-Camden-Wilmington, PA | Metro: Lancaster, PA 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 | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $458,540 | 0.35% | F |
| 4BR | $1,660 | $583,364 | 0.28% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 17536 stands at $76,042, which places significant constraints on rental affordability for households in the area. The market rate for rentals, according to the Census ACS, is $1,371 per month. This amount represents a substantial portion of the average household's income, making it challenging for residents to secure housing without financial strain.
In contrast, the federal market rate (FMR) for voucher payments in ZIP code 17536 for fiscal year 2024 is set at $930 per month. This means that for those eligible for Section 8 vouchers, the government-subsidized rent is significantly lower than the market rate, easing the financial burden on tenants.
The ZIP code has a relatively low percentage of renters at 6.7%, with a total population of 3,452. Given these numbers, the competition among landlords for tenants who can afford market-rate rents is likely to be fierce. However, the affordability gap between the market rate and the FMR suggests that landlords may find a steady stream of tenants through accepting Section 8 vouchers.
The takeaway for landlords considering their strategy is clear: while cash-paying tenants might offer higher monthly rents, the demand for affordable housing supported by Section 8 vouchers is strong. Accepting vouchers can ensure a stable tenant base and mitigate risks associated with vacancy rates. Landlords should weigh the benefits of consistent, subsidized rental income against the potential for higher, but less predictable, cash rents.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.