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 |
|---|---|---|---|---|
| 2BR | $2,790 | $484,958 | 0.58% | F |
| 3BR | $3,320 | $593,934 | 0.56% | F |
| 4BR | $3,670 | $970,992 | 0.38% | F |
| 5BR | $4,257 | $1,126,687 | 0.38% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP code 18925, which encompasses parts of Furlong, PA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2,610, while the Census ACS data indicates an average market rent of $2,102. This means that the FMR exceeds the market rent by $508, representing a 24.17% premium.
This premium makes the area a prime yield play for landlords and small-portfolio investors. Voucher tenants, who are subsidized by the government through the Section 8 program, can offer a steady and reliable stream of income. The higher FMR ensures that landlords receive a payment that is above the typical market rate, thus enhancing profitability. In Furlong, where only 10.3% of residents are renters, the competition for rental properties is relatively low, making it easier to attract voucher tenants.
The median home value in Furlong is $715,589, indicating a predominantly owner-occupied market. However, the median income of $207,609 suggests that many local residents may find renting affordable, especially if they are considering properties below the median home value. Given the lower market rent compared to FMR, landlords can benefit from the difference without setting rents so high that they price out potential tenants.
Despite the advantages, there are costs associated with housing voucher tenants. Landlords must comply with HUD regulations, which can include inspections and maintenance standards. Additionally, the administrative burden of managing voucher tenants, including monthly rent certifications and lease agreements, can be higher than managing non-voucher tenants.
In summary, the gap between FMR and market rent in ZIP 18925 presents a compelling opportunity for landlords and small-portfolio investors. By accepting Section 8 vouchers, they can secure a higher rental income than the open-market rates, thereby increasing their yields. However, they should also be prepared for the additional responsibilities and costs that come with being part of the Section 8 program.
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.