Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,510 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 19052 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1600. However, the market rent is not available, which complicates direct comparison. Assuming the market rent is higher than the FMR, we can infer that landlords accepting Section 8 vouchers might be renting their properties below the open-market rate. This scenario is common when the FMR does not accurately reflect the local rental market conditions.
If the FMR exceeds the market rent, as it stands at $1600, then landlords could potentially see a yield play by attracting voucher tenants. The gap between the FMR and the lower market rent would mean that landlords receive government subsidies that exceed what they might charge in a competitive market, thereby increasing their net income per unit. This situation is particularly favorable given the demographic context of ZIP 19052, where only 10.2% of residents are renters, indicating a smaller pool of potential tenants competing for units. With a median income of $88,831, the majority of residents may find it financially advantageous to own rather than rent, further justifying the attractiveness of Section 8 vouchers to landlords.
However, if the FMR is less than the market rent, landlords face a different challenge. They must decide whether the benefits of guaranteed payments and stable tenancy through the Section 8 program outweigh the financial impact of renting below market rates. In such a case, the difference in dollars would represent a loss compared to what could be earned in the open market. This gap, expressed as a percentage of the market rent, quantifies the subsidy shortfall landlords might experience. For instance, if the market rent were $2000, the gap would be $400, or 20%, illustrating the cost of participating in the Section 8 program relative to market conditions.
The lack of specific market rent data means we cannot provide an exact percentage gap, but the principle remains: landlords must evaluate whether the stability and security offered by Section 8 tenants compensate for any potential financial losses. Given the limited rental market share of 10.2%, landlords in ZIP 19052 might find Section 8 participation strategically beneficial to ensure consistent occupancy and income.
Data Sources: FMR data from HUD (2027). 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.