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 | $1,480 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,280 | $363,767 | 0.63% | D |
U.S. Census Bureau data (2024)
In ZIP code 18955, understanding the economics of Section 8 can help landlords and small-portfolio investors make informed decisions about their rental properties. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1440 per month for the fiscal year 2024. This figure is crucial because it directly influences the amount that a Section 8 voucher will cover.
The local market rent for a two-bedroom apartment, according to the Census ACS, is $1,492 per month. This indicates that the SAFMR is slightly below the average market rent, which is a common scenario in many areas. When a landlord accepts a Section 8 voucher, the payment structure is straightforward but requires careful consideration of all components.
A Section 8 voucher is designed to cover the difference between the tenant's contribution and the total rent. The tenant's portion is typically 30% of their income, and they also pay for utilities. For ZIP 18955, if we assume a standard utility allowance, the voucher will pay up to $1440 minus the tenant's contribution. If the tenant's income is such that their 30% contribution is $432 (a common figure based on a median income scenario), then the voucher would cover the remaining $1008 of the rent.
However, landlords need to be aware that the SAFMR does not automatically mean they will receive $1440. The actual reimbursement depends on the tenant's ability to contribute. In cases where the tenant's income is lower, their contribution might be less, narrowing the gap between the SAFMR and the total rent. Conversely, if the tenant's income is higher, their contribution could exceed the difference between the SAFMR and the market rent, potentially leading to a surplus for the landlord.
To illustrate, if a landlord charges $1,492 for a two-bedroom unit and the tenant contributes $432, the voucher would cover $1,060. This leaves a reimbursement gap of $432 ($1,492 - $1,060). However, if the market rent were lower, say $1,400, and the tenant still contributed $432, the voucher would cover $968, resulting in a surplus of $32 ($1,400 - $968).
In summary, for ZIP 18955, landlords should expect a reimbursement gap when renting a two-bedroom apartment for the market rate of $1,492, with the voucher covering up to $1,060. This leaves a gap of $432 that the landlord must either absorb or find ways to mitigate, such as reducing the market rent closer to the SAFMR or finding non-voucher tenants willing to pay the full market rate.
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.