Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,590 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
ZIP code 18918, located in Pennsylvania within the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA, has a Fair Market Rent (FMR) of $1920 for fiscal year 2024. To contextualize this figure, we must consider the typical FMR range within the broader MSA. The MSA generally sees FMRs that are higher, reflecting the overall cost of living and rental market conditions in larger urban areas.
The absence of specific market rent, home value, and renter share data for ZIP 18918 introduces some uncertainty but allows us to make reasonable inferences. Given the lower FMR compared to what is typically seen in urban parts of the MSA, it suggests that ZIP 18918 could be classified as a value pocket within the metro area. Value pockets are characterized by lower-than-average rents and property values, which can attract a different demographic, such as families seeking affordable housing options.
In the context of Section 8 analysis, ZIP 18918's lower FMR could indicate a potential sweet spot for landlords and small-portfolio investors who are looking to serve the needs of low-income renters. While the exact percentage of renters in this ZIP is not available, the inference that it might have a higher renter share due to affordability is a reasonable assumption. This scenario, where a high proportion of renters coexists with below-average home values, often signifies a location where Section 8 vouchers are more frequently utilized.
To further substantiate this analysis, a comparative look at other ZIP codes within the MSA would reveal the typical ranges for market rent and home values. For instance, urban centers like Philadelphia often see FMRs exceeding $2000, while suburban areas may hover around the $1920 mark or slightly above. Therefore, ZIP 18918 likely falls into the lower end of this spectrum, supporting its classification as a value pocket.
The lack of direct market rent and home value data means that landlords should conduct additional local research to fully understand the dynamics of the rental market in ZIP 18918. However, the lower FMR provides a strong indicator that this area is less expensive relative to the rest of the MSA, making it an attractive option for investors focused on affordability and government-assisted housing programs.
Data Sources: FMR data from HUD (2027).
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.