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 | $1,390 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,800 | $345,988 | 0.52% | F |
| 3BR | $2,140 | $439,451 | 0.49% | F |
| 4BR | $2,370 | $551,687 | 0.43% | F |
| 5BR | $2,749 | $645,725 | 0.43% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into Glenside, PA (ZIP 19038) might raise several concerns regarding the feasibility of investing in the area through the Section 8 program. Let's address these concerns head-on with the available data.
Objection 1: Will FMR $1740 (zip FY 2024) cover the mortgage on a $465,141 home?
The Fair Market Rent (FMR) for ZIP 19038 in fiscal year 2024 is set at $1740 per month. To determine if this will sufficiently cover a mortgage on a home valued at $465,141, we must consider typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 4.5%, the monthly payment for such a home would be approximately $2,250. This amount exceeds the FMR by about $510 per month. Therefore, relying solely on Section 8 payments would leave a significant shortfall in covering the mortgage costs. Investors should factor in additional sources of income or subsidies to bridge this gap.
Objection 2: Is there enough renter demand at 16.3%?
The rental vacancy rate in Glenside, PA stands at 16.3%. This percentage suggests that there is a relatively high supply of rental units compared to the demand. A higher vacancy rate could indicate challenges in finding tenants willing to pay market rates or enroll in the Section 8 program. However, it's important to note that a 16.3% vacancy rate does not necessarily mean there is insufficient demand; it could also reflect a balanced market where landlords have some flexibility in setting terms. The key here is to assess the local economy and job market to gauge the potential for increased tenant interest over time.
Objection 3: Will vouchers keep pace with $1,649 market rents?
The market rent in Glenside, PA is currently $1,649 per month. While the FMR is slightly lower at $1740, the question remains whether voucher amounts will adjust to match rising market rents. Historically, voucher amounts can lag behind market increases, leading to situations where landlords may struggle to cover operating costs. It's crucial for investors to monitor any updates to voucher policies and to consider the possibility of needing to supplement income with other sources to maintain profitability.
In conclusion, while Glenside, PA offers opportunities for investors interested in the Section 8 program, careful consideration of the financial realities is necessary. The data indicates that there may be challenges in fully covering mortgage costs and maintaining occupancy levels, but these obstacles can be managed with strategic planning and ongoing market analysis.
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.