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 | $1,420 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $162,547 | 1.13% | B |
| 3BR | $2,190 | $217,815 | 1.01% | B |
| 4BR | $2,420 | $258,197 | 0.94% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 19032, located in Folcroft, PA, within the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA metro area, reveals several key points regarding its viability for real estate investment, particularly for Section 8 landlords and small-portfolio investors.
Firstly, the rent math does not favor Section 8 participation. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1830, whereas the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1995. This means that landlords would receive less rent through Section 8 vouchers compared to the prevailing market rates, making it less financially attractive for properties in this area.
Secondly, the acquisition cost of homes in ZIP 19032 is relatively low, with a median home value of $214,868. However, the lack of available data on the number of days on market (DOM) and the percentage of price cuts (price-cut share) suggests that there might be challenges in acquiring properties quickly or at reduced prices. This indicates that while the initial purchase price is reasonable, the negotiation and speed of transactions could be less favorable.
Thirdly, there is a notable tenant demand in ZIP 19032. With a total population of 6,772, and 32.4% of residents being renters, the pool of potential tenants is significant. This high renter share implies a steady demand for rental properties, which is crucial for maintaining occupancy rates and ensuring a stable income stream for landlords.
In summary, while ZIP 19032 presents a moderate opportunity for real estate investment due to its reasonable median home values and substantial tenant demand, the financial dynamics of Section 8 participation do not align well with the local market rents. Landlords should consider the lower FMR compared to ZORI when deciding whether to participate in the Section 8 program, as it may impact their overall profitability. Additionally, the lack of detailed transaction data suggests that acquiring properties may require patience and strategic negotiation skills.
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.