Section 8 Fair Market Rent (FMR) for ZIP 19020 - 2027

Investment Score for ZIP 19020

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	$1,660
1 Bedroom	$1,800
2 Bedrooms	$2,150
3 Bedrooms	$2,560
4 Bedrooms	$2,830
5 Bedrooms	$3,283
6 Bedrooms	$3,677
7 Bedrooms	$3,971
8 Bedrooms	$4,170

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	$1,800	$224,786	0.8%	C
2BR	$2,150	$359,357	0.6%	F
3BR	$2,560	$406,198	0.63%	D
4BR	$2,830	$561,390	0.5%	F
5BR	$3,283	$606,785	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19020 (Bensalem, PA) #### Section 8 Voucher Dynamics In ZIP code 19020, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2100 per month according to the 2026 figures. This represents 30.3% of the median household income of $83,223. However, it's important to note that the actual rental market prices significantly exceed these FMRs. The Zillow median price for a two-bedroom home in this area is $353,146, which translates to a monthly rent of approximately $1400 based on a typical mortgage payment (assuming a 4.5% interest rate and a 20-year amortization period). This suggests that the actual rent for a two-bedroom unit could be much higher, given the high price-to-FMR ratio of 14.0x. This means that a property priced at the Zillow median would likely command a rent of around $1470 per month, which is still above the FMR of $2100. Therefore, voucher holders face significant constraints in finding affordable housing within their budget. They might have to look for smaller units or properties that are below the average market value to stay within the voucher limits. #### Affordability & Renter Profile The population of Bensalem is 56,809, with 39.8% of residents being renters. This indicates a substantial demand for rental properties, suggesting that the market is relatively tight. The occupancy rate of 96.7% further supports this conclusion, as it shows that most available units are already occupied. Given the median household income of $83,223, the majority of renters are likely middle-class families who can afford the higher rents but may struggle with the high cost of living in the area. The FMR for a two-bedroom unit at $2100 is only 30.3% of the median income, which is quite low compared to typical affordability standards. This implies that many renters may find it challenging to secure housing without financial assistance. Additionally, the high price-to-FMR ratio suggests that the rental market is overpriced relative to the FMR guidelines, making it difficult for low-income households to find suitable accommodation. #### Investor Angle From an investor perspective, the ZIP code 19020 offers mixed prospects when considering cash flow and investment grade. The FMRs provide a baseline for rental pricing, but the actual market rents are substantially higher. For instance, a two-bedroom unit priced at the Zillow median would likely generate a rent of around $1470 per month, which is still above the FMR but significantly lower than the potential market rent. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a mortgage payment of $1470, property taxes of $200, insurance of $100, and maintenance and other costs totaling $200, the total monthly expense would be around $1970. This is slightly below the FMR of $2100, indicating that a property rented at the FMR could potentially generate a small positive cash flow. However, the high price-to-FMR ratio suggests that the market is overvalued, and investors should be cautious about overpaying for properties. The investment grade for this ZIP code would be moderate, given the tight rental market and the potential for positive cash flow at FMR, but also considering the risk of overvaluation and the difficulty voucher holders face in finding suitable housing. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1760, which is closer to the actual market rent for smaller units. This strategy would help ensure that the property remains within the budget of voucher holders while still generating reasonable cash flow. 2. **Target Undervalued Properties**: Investors should seek out properties that are undervalued relative to the Zillow median. For example, a two-bedroom property priced at $250,000 (below the Zillow median of $353,146) could potentially generate a rent of around $1040 per month, which is well below the FMR of $2100. This would allow for a larger margin between the FMR and the actual rent, providing better cash flow and more flexibility in terms of tenant selection. 3. **Consider Renovation Projects**: Investors might find opportunities in older properties that require renovation. By investing in upgrades, they can increase the rental value while keeping it within the FMR guidelines. This approach can create a competitive advantage by offering better quality housing at a price that voucher holders can afford. #### Bottom Line For Section 8-focused investors, the ZIP code 19020 presents a challenging but potentially rewarding market. While the high price-to-FMR ratio poses risks, there are opportunities to generate positive cash flow by focusing on smaller units or undervalued properties. Based on the data, the recommendation is to **Hold** on existing investments and selectively **Buy** undervalued properties, particularly those that can be renovated to meet the needs of voucher holders. However, caution is advised due to the tight market conditions and the potential for overpaying in an overvalued market.

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.