Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,590 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
The analysis for ZIP code 18958 in Pennsylvania reveals some limitations due to incomplete data points. However, we can still draw a preliminary picture based on the available information.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 18958 for fiscal year 2024 is set at an annual rate of $1920. This figure represents the government-subsidized rental income that landlords can expect from tenants participating in the Section 8 program. Given that the median home value is currently not available, we must rely on other indicators to assess the potential investment attractiveness.
In a typical scenario where market rents are known, we would compare the subsidized FMR against the market rent to determine the gross yield. However, since the market rent for the area is listed as N/A, we cannot perform this direct comparison. The absence of market rent data makes it challenging to provide a precise gross yield for the unsubsidized scenario. Nonetheless, it's important to note that the gross yield under the Section 8 program would be significantly lower compared to market rates if they were available, due to the fixed nature of the subsidy payments.
The implied gross yield from the Section 8 program is calculated by taking the annualized FMR and dividing it by the property value. Since the median home value is also not available, we cannot provide a concrete gross yield percentage for this scenario. However, we can infer that the gross yield would likely be low, especially considering that the FMR is relatively modest.
The renter density and days on market (DOM) are also not specified, which are crucial metrics for understanding the local rental market dynamics. High renter density and a low DOM typically indicate a strong demand for rentals, which could support higher market rents. Conversely, low density and high DOM suggest a weaker market, potentially aligning more closely with the subsidized FMR levels.
Given the limited data, the Section 8 gross yield scenario appears more realistic for investment purposes in ZIP 18958. Landlords should consider the stability of rental income from the Section 8 program versus the uncertainty associated with unsubsidized market rents, especially in areas with incomplete market data.
Data Sources: FMR data from HUD (2027).
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.