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 | $2,160 |
| 1 Bedroom | $2,340 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,320 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,320 | $526,403 | 0.63% | D |
| 4BR | $3,670 | $724,997 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 18923, which includes parts of Fountainville, PA, presents an interesting case for real estate investment, particularly under the Section 8 program. However, some investors might be skeptical about the potential returns and challenges associated with this area. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $2,140 (for ZIP 18923 FY 2024) cover the mortgage on a $655,945 home?
To evaluate this objection, consider that the FMR represents the maximum amount that the Section 8 program will pay for rental properties in the area. A home priced at $655,945 would likely require a substantial mortgage payment. Assuming a 30-year fixed-rate mortgage with a 4% interest rate, the monthly payment on a loan of approximately $525,000 (after a 20% down payment) would be around $2,500. This means that the FMR of $2,140 would not fully cover the mortgage payment, leaving the landlord responsible for the shortfall. However, this does not account for potential tax benefits or other incentives that might offset the cost.
Objection 2: Is there enough renter demand at 20.9%?
The 20.9% figure suggests that a significant portion of households in ZIP 18923 are renters. While this percentage indicates a moderate level of demand, it's essential to consider the overall population and the number of rental units available. According to recent data, the ZIP code has a relatively small number of vacant properties, which could imply strong competition among landlords. To fully assess the demand, we would need more granular data on the number of renters versus the supply of rental units, which is not currently available in the provided data.
Objection 3: Will vouchers keep pace with $2,253 market rents?
The market rent of $2,253 exceeds the FMR of $2,140, indicating a gap between what landlords can charge and what the Section 8 program will subsidize. This discrepancy raises concerns about whether vouchers will sufficiently cover the costs for landlords. It's crucial to note that the voucher amount is set by HUD and may not always align with market conditions. Landlords must decide if they can afford to accept a lower rent or if they are willing to wait for adjustments in future years. Historical trends show that FMRs can increase over time, but the rate of increase varies by location and economic conditions.
In conclusion, while the data provides insight into the potential challenges of investing in ZIP 18923 under the Section 8 program, it also highlights opportunities. Investors should carefully weigh the financial implications and consider additional factors such as property management costs and local market dynamics before making a decision.
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.