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 | $1,450 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $357,779 | 0.53% | F |
| 3BR | $2,240 | $472,871 | 0.47% | F |
| 4BR | $2,470 | $562,436 | 0.44% | F |
| 5BR | $2,865 | $652,964 | 0.44% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 19064 (Springfield, PA) for Section 8 properties, follow these steps:
1. Can the Fair Market Rent (FMR) of $1900 cover the debt service on a property valued at $484,101?
Yes: The FMR of $1900 can potentially cover the debt service on a property valued at $484,101, assuming typical financing terms and a reasonable interest rate. For example, with a 30-year fixed mortgage at an average rate, the monthly payment would be around $2,100, which is slightly above the FMR. However, this calculation does not include other expenses such as maintenance, insurance, and taxes. If these additional costs are low, the FMR could still be sufficient.
No: The FMR of $1900 cannot cover the debt service on a property valued at $484,101 under normal financing conditions. A typical monthly mortgage payment would exceed this amount, making it financially unfeasible without additional subsidies or rental income sources.
2. How does the market rent of $1,469 compare to the FMR?
Above FMR: If the market rent were above the FMR of $1900, it would indicate strong demand and potential profitability beyond Section 8 limits. However, the actual market rent is $1,469, which is below the FMR.
At FMR: This scenario would suggest that the market rent aligns with the FMR, providing a balanced situation where Section 8 tenants pay fair market rates. Unfortunately, the market rent is below the FMR.
Below FMR: With the market rent at $1,469, it is indeed below the FMR. This means that landlords will not receive market-rate rents from Section 8 tenants, but they will still benefit from the stability and security of government-backed rental payments.
3. Is there enough demand with 6.1% of the population being renters and a 5-day Days on Market (DOM) average?
Yes: Despite the relatively low percentage of renters at 6.1%, the 5-day DOM indicates strong demand for rental properties in Springfield, PA. This suggests that properties are rented quickly, which can be advantageous for landlords seeking steady income and minimal vacancy periods.
No: If the DOM were significantly higher, it would indicate a slower rental market. However, the 5-day DOM is quite favorable. Even with the lower renter percentage, landlords can expect quick turnover and occupancy.
It depends: The 6.1% renter rate is on the lower side, which might imply limited demand overall. Yet, the 5-day DOM counters this concern, showing that when units do come onto the market, they are rented promptly. Landlords must weigh these factors carefully, considering their investment goals and risk tolerance.
In conclusion, while the FMR of $1900 may not fully cover debt service on a $484,101 property, the below-market rent of $1,469 coupled with a quick rental market (5-day DOM) makes ZIP 19064 a viable option for landlords willing to accept slightly below-market returns for the stability of Section 8 tenancy. The decision ultimately hinges on the landlord's financial model and willingness to manage the gap between FMR and debt service.
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.