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 | $1,300 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $455,904 | 0.37% | F |
| 3BR | $2,000 | $575,929 | 0.35% | F |
| 4BR | $2,210 | $797,033 | 0.28% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 18942, Ottsville, PA, reveals a unique blend of yield and stability that positions it as a moderate opportunity for landlords and small-portfolio investors.
On the yield axis, the Fair Market Rent (FMR) for 2024 stands at $1,530. This figure is slightly above the market rent of $1,496, indicating a potential for modest rental income growth. However, the median home value of $606,213 suggests that the initial investment cost is relatively high, which can dampen the overall yield when compared to other areas with lower property values. The FMR increase, while positive, does not significantly outpace the market rent, suggesting that this is not a high-yield market.
Moving to the stability axis, Ottsville has an interesting mix of factors. With only 11.9% of residents being renters, the demand for rental properties is relatively low. This can translate into less competition among landlords but also means fewer potential tenants, which could lead to longer vacancy periods. The average daily days on market (DOM) is not available, which makes it challenging to assess how quickly properties are rented. Lastly, the median household income of $100,417 is quite strong, implying that those who do rent are likely to be financially stable and able to meet their rent obligations consistently.
Considering these metrics, ZIP 18942 leans towards a steady-cashflow zone rather than a high-yield/low-stability market. The slight edge in FMR over market rent and the strong median income suggest a reliable tenant pool capable of paying rent without significant default risk. However, the low percentage of renters indicates a need for careful tenant selection and possibly higher marketing costs to attract suitable tenants. Overall, Ottsville presents a balanced scenario where landlords can expect consistent returns but should manage expectations regarding high yields due to the higher property costs and limited rental demand.
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.