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 | $1,410 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,820 | $328,162 | 0.55% | F |
| 3BR | $2,170 | $431,985 | 0.5% | F |
| 4BR | $2,390 | $657,365 | 0.36% | F |
| 5BR | $2,772 | $803,521 | 0.34% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 19044, which covers Horsham, Pennsylvania, stands at $88,173. This figure provides a baseline for assessing the financial capacity of typical households in the area. The market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $1,656. While this is below the Fair Market Rent (FMR) of $1,880 for the fiscal year 2024, it still represents a significant portion of monthly income.
To put these numbers into perspective, a household earning the median income would dedicate approximately 21% of their gross monthly income to paying the market rate rent. This is within the generally accepted guideline of spending no more than 30% of income on housing. However, when considering the FMR of $1,880, the affordability gap becomes more pronounced, requiring nearly 25% of the median household income.
With 42.2% of the population being renters and a total population of 17,279, there is a notable demand for rental properties in Horsham. This high percentage of renters indicates a competitive landscape for landlords, where attracting tenants can be challenging if rents are set too high or conditions are not favorable.
The affordability gap between the ZORI and the FMR suggests that landlords who accept Section 8 vouchers could potentially benefit from a more stable tenant base. Vouchers, which cover up to the FMR, can make a property more attractive to low-income households who might otherwise struggle to find affordable housing. In contrast, landlords who opt for cash-paying tenants may face fiercer competition and need to ensure their properties offer value at the higher ZORI rates.
Landlords in Horsham should consider the balance between voucher and cash-paying tenants carefully. Accepting vouchers allows them to tap into federal subsidies that ensure consistent rent payments, albeit at a lower rate than the market might bear. Cash-paying tenants, while offering potentially higher rents, require landlords to manage the risk of vacancy and competition more actively. The choice should be informed by an analysis of local market dynamics and the landlord's tolerance for risk versus guaranteed income stability.
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.