Section 8 Fair Market Rent (FMR) for ZIP 18974 - 2027

Investment Score for ZIP 18974

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	$1,450
1 Bedroom	$1,570
2 Bedrooms	$1,880
3 Bedrooms	$2,240
4 Bedrooms	$2,470
5 Bedrooms	$2,865
6 Bedrooms	$3,209
7 Bedrooms	$3,466
8 Bedrooms	$3,639

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
1BR	$1,570	$203,067	0.77%	D
2BR	$1,880	$392,052	0.48%	F
3BR	$2,240	$482,740	0.46%	F
4BR	$2,470	$599,389	0.41%	F
5BR	$2,865	$815,902	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 18974 (Warminster, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 18974, as per the 2026 figures, is set at $1890 for a two-bedroom unit. This represents approximately 21.9% of the median household income of $103,779, indicating that it is reasonably affordable for low-income households. However, the actual rental market in Warminster is significantly higher. The Zillow median price for a two-bedroom home is $386,108, which translates to a price-to-FMR ratio of 17.0x. This means that the typical rent for a two-bedroom unit is likely much higher than the FMR, potentially creating a significant constraint for Section 8 voucher holders who can only afford up to $1890 for such a unit. #### Affordability & Renter Profile Given the high median household income and the relatively low percentage of renters (24.7%), it is clear that the housing market in Warminster is predominantly occupied by homeowners. The occupancy rate of 96.7% suggests that the market is quite tight, with very few vacant units available. For those who do rent, the median income indicates that they are likely middle-class individuals or families who can afford higher rents. The fact that the FMR for a two-bedroom unit is only 21.9% of the median income further supports the idea that the rental market is tight and that many residents have higher incomes, making it difficult for low-income households to find affordable rentals. #### Investor Angle From an investor perspective, the ZIP code 18974 presents a challenging environment for cash flow positive investments at the FMR level. Given the high actual rental rates compared to the FMR, landlords who accept Section 8 vouchers would be operating at a significant discount relative to market rates. For instance, a two-bedroom unit with a market rent of $1890 might actually fetch around $3400 based on the price-to-FMR ratio. Accepting a voucher at $1890 would mean a substantial reduction in potential rental income. Additionally, the tight market and high occupancy rate indicate that there is limited supply of rental units, making it harder for investors to find properties that are suitable for Section 8 tenants. The investment grade for this ZIP code would be considered low for Section 8-focused investors due to the high market rents and the limited number of units that are likely to be available at or below the FMR. Investors looking to maximize returns would likely find better opportunities in areas where the FMR is closer to market rents. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should focus on acquiring properties with fewer bedrooms, such as one-bedroom units, where the FMR is lower ($1590). This could help mitigate some of the financial pressure associated with accepting Section 8 vouchers. 2. **Consider Subsidized Housing Programs**: Given the high cost of living in Warminster, investors might want to explore other subsidized housing programs that offer higher payment standards. These programs could provide a more favorable return on investment while still serving low-income households. 3. **Evaluate Long-Term Rental Trends**: Despite the current tight market, it is important to evaluate long-term rental trends. If the trend towards higher rents continues, the gap between FMR and market rents will widen, making it even less attractive for investors to accept Section 8 vouchers. #### Bottom Line For Section 8-focused investors, the ZIP code 18974 (Warminster, PA) is not recommended for purchase. The high market rents and tight occupancy rate make it difficult to find properties that are both affordable and suitable for low-income households. Instead, investors should consider holding their current investments or skipping this market altogether in favor of areas with more favorable conditions for Section 8 vouchers.

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.