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 | $1,070 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,660 | $191,335 | 0.87% | C |
| 4BR | $1,830 | $225,327 | 0.81% | C |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 19022 might raise several concerns regarding the viability of renting properties under the Section 8 program. Here are three key objections and their corresponding analyses based on available data.
Objection 1: Will the Fair Market Rent (FMR) of $1450 for ZIP 19022 in fiscal year 2024 be sufficient to cover the mortgage on a home valued at $194,936?
The FMR of $1450 is the maximum amount that landlords can charge for a two-bedroom rental unit in ZIP 19022. To determine if this will cover the mortgage, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $194,936 home would be approximately $1050. This means the FMR of $1450 exceeds the mortgage payment by $400, which should allow for property taxes, insurance, maintenance, and a profit margin.
Objection 2: Is there enough renter demand at 51.1% to ensure steady occupancy?
The 51.1% rental rate indicates that over half of the housing units in ZIP 19022 are rented. This suggests a reasonable level of demand. However, it's important to note that this percentage does not directly correlate to the demand for Section 8 rentals. The data does not specify the portion of renters who are eligible for or actively seeking Section 8 assistance. Therefore, while there appears to be a significant number of renters, the specific demand for subsidized housing remains uncertain without additional data.
Objection 3: Will vouchers keep pace with the $1,155 market rents for a two-bedroom unit?
The voucher amount in ZIP 19022 is set at $1450, which is higher than the current market rent of $1,155 for a two-bedroom unit. This means that landlords participating in the Section 8 program should receive the difference between the voucher amount and the market rent, ensuring they are compensated for any shortfall. However, the long-term stability of this compensation depends on whether market rents continue to rise and if the government adjusts the voucher amounts accordingly.
In summary, the FMR of $1450 is adequate to cover mortgage payments and provide a buffer for other expenses. The overall rental rate of 51.1% suggests a strong demand for housing, though the specific demand for Section 8 units requires further investigation. Lastly, the current voucher amount exceeds the market rent, but future adjustments will depend on changes in market conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.