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 | $1,460 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,250 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $353,260 | 0.54% | F |
| 3BR | $2,250 | $435,228 | 0.52% | F |
| 4BR | $2,480 | $634,313 | 0.39% | F |
| 5BR | $2,877 | $744,503 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP code 18960, Sellersville, PA, can be derived using the Fair Market Rent (FMR) and market rent figures provided. For a two-bedroom unit, the annualized FMR for FY 2024 is $1830 multiplied by 12, equating to an annual rental income of $21,960. The market rent figure, based on Census ACS data, is $1,362 per month, translating to an annual rental income of $16,344.
To calculate the implied gross yield, we divide these annual incomes by the median home value of $454,035. For the FMR scenario, the gross yield is approximately 4.84%. This is calculated as follows: $21,960 / $454,035 = 0.0484 or 4.84%. In contrast, the gross yield for the market rent scenario is about 3.60%, computed as: $16,344 / $454,035 = 0.0360 or 3.60%.
Given the 24.8% renter density, it is evident that a significant portion of the population in Sellersville leans towards homeownership rather than renting. This statistic suggests that landlords might face a tighter market when seeking tenants, particularly those relying on Section 8 vouchers. The N/A-day DOM (days on market) indicates incomplete data, possibly due to the low turnover rate in the area, further supporting the idea of a stable but less dynamic rental market.
The gross yield comparison reveals a notable difference between the two scenarios. The FMR-based gross yield at 4.84% provides a higher return compared to the market rent scenario at 3.60%. However, the reality of the situation is that landlords should expect the lower gross yield to be more reflective of the actual rental environment. The higher FMR rate, while appealing, does not necessarily translate into a higher occupancy rate, especially in a market where over three-quarters of the population are homeowners.
In conclusion, while the Section 8 program offers a gross yield of 4.84% based on the FMR, the more realistic expectation for landlords and small-portfolio investors in ZIP 18960 would be the 3.60% gross yield based on market rent. This assessment takes into account the local renter density and the implications of a predominantly homeowner community on the rental market dynamics.
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.