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 | $1,810 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,070 |
| 5 Bedrooms | $3,561 |
| 6 Bedrooms | $3,988 |
| 7 Bedrooms | $4,307 |
| 8 Bedrooms | $4,522 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,330 | $371,163 | 0.63% | D |
| 3BR | $2,780 | $674,298 | 0.41% | F |
| 4BR | $3,070 | $1,100,652 | 0.28% | F |
| 5BR | $3,561 | $1,421,533 | 0.25% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 19066 (Merion Station, PA) for Section 8 investment must follow a decision tree based on the financial metrics and market conditions.
1) Does the Fair Market Rent (FMR) of $2,610 cover the debt service on a property valued at $1,096,072?
Yes: The FMR of $2,610 is sufficient to cover the debt service on a property valued at $1,096,072. This ensures that the rental income will meet the financial obligations associated with owning the property.
No: If the FMR of $2,610 does not clear the debt service on a property valued at $1,096,072, then it would not be advisable to invest in this area for Section 8 purposes. The rental income would fall short of covering the mortgage and other expenses.
2) Is the market rent of $2,206 above, at, or below the FMR?
Above FMR: If the market rent exceeds the FMR, the property could potentially generate additional revenue beyond what is covered by Section 8 vouchers. This scenario presents an opportunity for higher returns.
At FMR: If the market rent is exactly at the FMR, the landlord can expect to break even on rental income when using Section 8 vouchers. There would be no extra margin for unexpected costs or improvements.
Below FMR: If the market rent is below the FMR, the landlord would receive less than the voucher amount, which could lead to financial losses unless the difference is subsidized by the landlord. This situation is not favorable for a Section 8 investment.
3) Are 11.8% renters and N/A-day days on the market (DOM) indicative of enough demand?
It Depends: With 11.8% of residents being renters, there is a limited but present demand for rental properties in Merion Station, PA. The N/A-day DOM suggests either that listings are quickly rented or that there isn't enough data to determine the average number of days properties remain on the market before being rented. A quick DOM is positive, indicating strong demand, but without specific numbers, it's hard to make a definitive judgment.
To conclude, if the FMR of $2,610 covers the debt service on a property valued at $1,096,072 and the market rent is at or above the FMR, the investment is financially viable. However, the relatively low percentage of renters and unclear DOM data indicate that demand might not be robust. Landlords should carefully consider these factors before making an investment decision in ZIP code 19066.
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.