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 | $1,250 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $136,794 | 1.18% | B |
| 3BR | $1,930 | $169,429 | 1.14% | B |
| 4BR | $2,130 | $213,403 | 1% | C |
| 5BR | $2,471 | $210,674 | 1.17% | B |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 19023, which includes Collingdale, PA, is set at $1570 for fiscal year 2024. This figure represents the maximum amount the U.S. Department of Housing and Urban Development (HUD) will pay to cover a tenant's rent under the Section 8 housing voucher program. It is important to note that this is not the rent you should charge your tenants; it is the reimbursement limit from the government.
In comparison, the Zillow Observed Rent Index (ZORI), which reflects actual rents paid by tenants in the area, is currently at $1471. This suggests that the market rent in Collingdale is slightly below the HUD's FMR, indicating a reasonable margin for landlords participating in the Section 8 program.
The 47.4% renter share of the population in Collingdale signals a strong demand for rental properties. With nearly half of the residents renting, there is a significant pool of potential tenants who could benefit from the Section 8 program, making it easier to fill vacancies and maintain occupancy rates.
When considering acquiring a property in this area, be aware that the median home value stands at $171,661. This figure can help you estimate the cost of purchasing a property suitable for Section 8 tenants. While the initial investment might seem substantial, the steady income from the Section 8 program can provide financial stability and a predictable cash flow.
Before proceeding with a Section 8 rental, ensure that your property meets the required quality standards known as HUD's Housing Quality Standards (HQS). This verification step is crucial because failing to meet these standards can result in penalties or loss of participation in the program. These standards include basic safety and habitability requirements such as proper heating, plumbing, and structural integrity.
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.