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 | $1,470 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,900 | $338,243 | 0.56% | F |
| 3BR | $2,260 | $592,799 | 0.38% | F |
| 4BR | $2,500 | $819,430 | 0.31% | F |
| 5BR | $2,900 | $900,674 | 0.32% | F |
U.S. Census Bureau data (2024)
A landlord considering whether to buy a property in ZIP code 19034 (Fort Washington, PA) for Section 8 should follow this decision tree:
1) Does FMR $1680 (zip FY 2024) clear debt service on a $751,944 property?
No. To determine if the Fair Market Rent (FMR) of $1680 can cover the debt service on a property valued at $751,944, we need to calculate the expected monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be approximately $3840. This amount exceeds the FMR of $1680, indicating that the rent alone cannot cover the debt service.
2) Is market rent $1,673 (Census ACS) above, at, or below FMR?
The market rent of $1673 is slightly below the FMR of $1680. This suggests that while the property may be competitive in the rental market, it does not provide a significant premium over the FMR. Landlords seeking to maximize their income might find this unattractive compared to areas where market rents exceed the FMR.
3) Are 23.7% renters + N/A-day DOM enough demand?
It depends. The percentage of renters in the area is 23.7%. While this indicates a reasonable level of demand, the lack of data on days on market (DOM) means we cannot assess how quickly properties are rented out. In addition, the FMR not covering the debt service poses a financial risk. If the landlord has a low-risk tolerance and needs the rent to fully cover expenses, then the answer is no. However, if the landlord can supplement the income from other sources or has a higher risk tolerance, they may still find the investment viable.
To conclude, the decision to invest in ZIP 19034 for Section 8 properties hinges on the landlord's financial situation and risk tolerance. If the goal is to rely solely on Section 8 rents to cover all costs, then the answer is no due to the FMR not covering the debt service. If the landlord can accept a lower return on investment or has alternative income streams, then the answer shifts to yes or it depends, given the slight gap between market rent and FMR and the moderate rental demand.
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.