Section 8 Fair Market Rent (FMR) for ZIP 18954 - 2027

Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA

Investment Score for ZIP 18954

Monthly Rent (2BR)

$2,430

Median Price (2BR)

$502,473

1% Rule

0.48%

Annual Yield

5.8%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,880
1 Bedroom	$2,030
2 Bedrooms	$2,430
3 Bedrooms	$2,890
4 Bedrooms	$3,190
5 Bedrooms	$3,700
6 Bedrooms	$4,144
7 Bedrooms	$4,476
8 Bedrooms	$4,700

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,430	$502,473	0.48%	F
3BR	$2,890	$595,194	0.49%	F
4BR	$3,190	$780,813	0.41%	F
5BR	$3,700	$980,240	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

10,380

Median Household Income

$159,857

Housing Units

3,738

Renter Percentage

1.8%

Occupancy Rate

98.7%

Renter Occupied

To determine if a landlord should invest in ZIP code 18954 (Richboro, PA) for Section 8 properties, follow this decision tree based on the provided data.

Step 1: Does the Fair Market Rent (FMR) of $2300 cover the debt service on a property valued at $712,170?

No: The FMR does not sufficiently cover the debt service for a property of that value. A typical mortgage payment for a property priced at $712,170 would likely exceed $2300 per month, making it financially unviable for a Section 8 tenant.
Yes: Proceed to Step 2.

Step 2: Is the market rent of $2,025 above, at, or below the FMR?

Above: The market rent is lower than the FMR, indicating that Section 8 tenants could potentially pay more than what most landlords charge. This suggests a good opportunity to maximize rental income while still being competitive in the market.
At: The market rent is exactly at the FMR, meaning landlords can charge the maximum allowed by the program without losing out to other rental options.
Below: The market rent is below the FMR, which means landlords could charge less than the FMR and still be competitive in the market. However, this also indicates that there might be more affordable housing options available, reducing demand for Section 8 properties.

Step 3: Are 1.8% of the population renters and the days on market (DOM) sufficient to meet demand?

It Depends: With only 1.8% of the population being renters, the overall demand for rental properties is low. However, the N/A-day DOM figure makes it difficult to assess how quickly units are rented once they become available. If the DOM is relatively low, it might indicate that there's a steady flow of tenants despite the low rental population percentage. Conversely, if the DOM is high, it suggests that even though there's a low demand, it takes a long time to find a tenant, which is not ideal for Section 8 properties where timely tenancy is crucial.

In conclusion, ZIP 18954 presents a mixed scenario for Section 8 investments. The FMR of $2300 must first be assessed against the debt service of a property costing $712,170. If it covers the debt service, then the comparison between the FMR and the market rent of $2,025 should be considered. Lastly, the low rental population percentage combined with an unclear DOM figure means that while the financials might work, the demand for rental properties needs careful consideration. Landlords should proceed cautiously and investigate further into the local rental 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.