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 | $1,340 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $430,678 | 0.4% | F |
| 3BR | $2,060 | $436,731 | 0.47% | F |
| 4BR | $2,270 | $587,920 | 0.39% | F |
| 5BR | $2,633 | $644,322 | 0.41% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 18964, located in Souderton, Pennsylvania, stands at $96,143. This figure provides insight into the economic profile of the area but raises questions about the affordability of housing for its residents. The market rate for rental properties, known as the Zillow Observed Rent Index (ZORI), is $1,475. This amount represents a significant portion of the average household’s monthly income, indicating a notable challenge for renters.
To further understand the financial landscape, consider the Federal Market Rent (FMR) standard, which is set at $1,610 for the fiscal year 2024. This standard is used to determine the payment amount for housing vouchers under the Section 8 program. The discrepancy between the ZORI ($1,475) and the FMR ($1,610) suggests that households receiving vouchers might have slightly more purchasing power compared to those paying market rates.
In ZIP 18964, 31.1% of the population are renters, with a total population of 14,546. Given these numbers, there is a substantial pool of potential tenants. However, the affordability gap between median income and rental costs could lead to increased competition among landlords. Tenants who can secure a Section 8 voucher might prefer it over paying market rates, as it offers a more affordable option. This preference could influence the demand for subsidized housing units.
The takeaway for landlords considering whether to accept voucher payments or focus on cash-paying tenants is clear. While cash-paying tenants might offer immediate financial stability, the higher rent burden on typical households could make them more susceptible to market fluctuations. Accepting vouchers ensures a steady stream of income, albeit at a fixed rate, and helps attract tenants who otherwise might struggle to find suitable housing. Landlords should weigh the benefits of guaranteed payments against the administrative complexities of participating in the Section 8 program.
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.