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 | $1,530 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,350 | $669,641 | 0.35% | F |
U.S. Census Bureau data (2024)
The ZIP code 18920 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, as the market rent stands at an unspecified amount compared to the $2000 Fair Market Rent (FMR) for the fiscal year 2024. High turnover can lead to increased costs associated with finding new tenants and maintaining property standards.
Vacancy exposure is another issue. The average Days on Market (DOM) is currently unknown, which means it's difficult to predict how long a property might remain vacant between tenants. Vacancies reduce income and increase holding costs, making this an important consideration for any landlord.
Deferred maintenance poses a substantial risk given the typical home value of $700,402 and a median income of $152,813. Landlords must ensure that properties meet the required housing quality standards set by HUD, which can be costly if there is significant deferred maintenance. These expenses can cut into profit margins and require careful financial planning.
However, these risks are somewhat mitigated by the high renter share of 9.7%. A higher proportion of renters typically translates to greater demand for housing vouchers, which can stabilize rental income and reduce the likelihood of vacancies. This dense rental market also suggests a competitive environment where landlords who maintain their properties well will have an advantage.
In conclusion, despite the potential issues with tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 18920 makes it a moderate risk for a first-time Section 8 landlord. Careful management and adherence to property standards can help navigate these challenges effectively.
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.