Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,970 |
| 1 Bedroom | $2,140 |
| 2 Bedrooms | $2,550 |
| 3 Bedrooms | $3,040 |
| 4 Bedrooms | $3,350 |
| 5 Bedrooms | $3,886 |
| 6 Bedrooms | $4,352 |
| 7 Bedrooms | $4,700 |
| 8 Bedrooms | $4,935 |
U.S. Census Bureau data (2024)
The ZIP code 18912 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover can be a significant issue when comparing the market rent, which is currently not available, to the Fair Market Rent (FMR) of $2370 set for FY 2024. This discrepancy suggests that landlords might face difficulties in maintaining consistent tenancy, as tenants may seek out properties where the rent aligns more closely with the FMR.
Vacancy exposure is another concern. The days on market (DOM) for the area is not specified, but typically, higher DOM indicates a greater risk of prolonged vacancies. This can lead to financial strain for landlords who rely on rental income to cover mortgage payments and other property expenses.
Deferred maintenance is also a potential pitfall. With the typical home value unspecified and a median income of $250,001, landlords must be prepared for the possibility that some tenants might not prioritize upkeep of the property. This can result in higher maintenance costs and a need for frequent repairs, impacting the overall profitability of the investment.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 17.2%. A larger proportion of renters generally translates into higher demand for housing vouchers, making it easier for landlords to find eligible tenants through the Section 8 program. This ensures a steady stream of tenants who are committed to paying their rent through the voucher system, reducing the likelihood of default and vacancy.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 18912 is moderate. While there are notable risks associated with tenant turnover and maintenance, the strong renter base provides a solid foundation for finding reliable tenants through the Section 8 program.
Data Sources: FMR data from HUD (2027). 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.