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 | $1,430 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,550 | $146,641 | 1.06% | B |
| 2BR | $1,850 | $251,492 | 0.74% | D |
| 3BR | $2,200 | $439,712 | 0.5% | F |
| 4BR | $2,430 | $673,535 | 0.36% | F |
| 5BR | $2,819 | $830,900 | 0.34% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 19046 for Section 8 landlords and small-portfolio investors are significant. Firstly, the tenant turnover rate is likely to be higher due to the discrepancy between the market rent of $1,675 and the Fair Market Rent (FMR) of $1,930 for fiscal year 2024. This gap indicates that tenants may struggle to afford the market rent, leading to frequent moves and increased vacancy periods.
Vacancy exposure is another critical concern. The Days on Market (DOM) data is not available, which makes it challenging to predict how long properties might remain vacant. Given the typical home value of $504,845 and the median income of $109,818, landlords must be prepared for deferred maintenance costs. Properties in this area can quickly deteriorate if regular upkeep is neglected, and the financial burden of repairs can be substantial.
However, these risks are tempered by the high renter share in ZIP 19046, which stands at 32.7%. High renter density generally translates into greater demand for rental housing, including those supported by Section 8 vouchers. This robust demand can help mitigate the impact of higher turnover rates and provide a steady stream of tenants willing to pay the FMR.
In conclusion, despite the challenges posed by tenant turnover and potential deferred maintenance issues, the strong rental market and high demand for subsidized housing make ZIP 19046 a moderate risk for a first-time Section 8 landlord. The key to success will be maintaining a balance between competitive pricing and property upkeep.
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.