Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,480 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 18944 (Perkasie, PA) for Section 8 purposes, follow this decision tree:
1) Does FMR $1770 (zip FY 2024) clear debt service on a $514,037 property?
Yes: If the Fair Market Rent (FMR) of $1770 is sufficient to cover the debt service on a property valued at $514,037, then the answer is affirmative. This means the rental income will meet the financial obligations tied to the mortgage and other expenses.
No: If the FMR of $1770 does not clear the debt service on a property costing $514,037, then purchasing for Section 8 is not financially viable without additional considerations such as subsidies or lower mortgage rates.
2) Is market rent $2,024 (ZORI) above, at, or below FMR?
Above: If the Zillow Observed Rental Index (ZORI) of $2,024 is higher than the FMR of $1770, then the market rent exceeds the maximum allowable rent under Section 8. Landlords must decide if they can operate within the FMR limit or seek properties with lower purchase prices to align with the FMR.
At: If the market rent matches the FMR, then the landlord can expect to receive the full market value for their property under Section 8 without any adjustments.
Below: If the ZORI is less than the FMR, the landlord would benefit from higher Section 8 rents compared to the local market rate, making the investment more attractive.
3) Are 21.7% renters + 5-day DOM enough demand?
Yes: With 21.7% of the population being renters and an average of 5 days on the market before occupancy, there is a strong indication that demand for rental properties is high. This suggests that once a tenant is secured, the property will likely remain occupied, providing stable income.
No: If the percentage of renters is low or the days on market (DOM) are significantly higher, the demand might not be robust enough to ensure consistent occupancy and income.
It Depends: If the percentage of renters is marginal but the DOM is short, or vice versa, the landlord needs to consider the balance between these factors. A short DOM might indicate quick turnover despite a smaller percentage of renters, while a higher percentage of renters could still mean slower occupancy if the market is saturated.
Based on the provided data, the FMR of $1770 should be evaluated against the debt service costs of a $514,037 property. If market rent ($2,024) is above the FMR, adjustments will be necessary to comply with Section 8 guidelines. The combination of 21.7% renters and a 5-day DOM indicates a healthy demand for rental properties, supporting the viability of a Section 8 investment in Perkasie, PA.
Data Sources: FMR data from HUD (2027). 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.