Location: Philadelphia-Camden-Wilmington, PA | Metro: Allentown-Bethlehem-Easton, PA HUD Metro FMR Area
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 | $1,410 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,830 | $319,993 | 0.57% | F |
| 3BR | $2,180 | $410,295 | 0.53% | F |
| 4BR | $2,410 | $585,090 | 0.41% | F |
| 5BR | $2,796 | $656,501 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 18951, located in Quakertown, PA, presents an interesting scenario for both renters and landlords. The median income in this area stands at $98,268, which is a solid financial base for most households. However, when it comes to affording the market-rate rent of $1,851, the situation becomes more nuanced.
To frame this from the renter's perspective, let's consider the financial implications. A household earning the median income would allocate approximately 19.3% of their annual income towards the market-rate rent. This calculation is based on the assumption that rent consumes around 30% of a household's gross income, which is a common benchmark used by many financial advisors. In Quakertown, however, the actual rent expense at $1,851 per month represents a higher proportion of the median income, indicating a potential affordability challenge for some residents.
The Federal Market Rent (FMR) for ZIP 18951 in fiscal year 2024 is set at $1,710. This figure is crucial for understanding how much assistance renters might receive through housing vouchers. For those who qualify, the voucher payment standard means they would pay less than the market rate, making it easier for them to find affordable housing options.
With 18.0% of the 36,568 population being renters, the competition among landlords in this area is moderate. However, the affordability gap between the ZORI ($1,851) and the FMR ($1,710) suggests that landlords might face challenges in filling vacancies if they solely rely on cash-paying tenants. Some renters might find the market-rate too high, even with the median income, leading them to seek government assistance or alternative lower-cost housing solutions.
For landlords considering their rental strategy, the key takeaway is to evaluate the benefits of accepting housing vouchers. While the voucher rate is slightly below the market rate, it ensures a steady stream of income and reduces the risk of vacancy. Accepting vouchers could be a strategic move to attract tenants who might otherwise struggle with the high market-rate rents, thereby maintaining occupancy levels and ensuring consistent revenue.
In summary, landlords in ZIP 18951 should consider the balance between market-rate rents and voucher payments. By strategically accepting vouchers, they can cater to a broader range of tenants, ensuring their properties remain occupied and profitable.
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.