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 | $1,890 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,440 |
| 3 Bedrooms | $2,910 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,040 | $229,612 | 0.89% | C |
| 2BR | $2,440 | $346,184 | 0.7% | D |
| 3BR | $2,910 | $618,514 | 0.47% | F |
| 4BR | $3,210 | $1,132,106 | 0.28% | F |
| 5BR | $3,724 | $1,415,052 | 0.26% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Narberth, PA (ZIP 19072) might raise several valid concerns regarding the feasibility of investing in Section 8 properties. Here's a direct look at those concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $2230 (for zip FY 2024) cover the mortgage on an average home priced at $835,239?
The short answer is no, it will not. To understand why, let's break down the numbers. With an average home price of $835,239, even assuming a conservative interest rate of 4%, the monthly mortgage payment for a fully financed property could easily exceed $3,500. This amount is significantly higher than the $2230 FMR for Narberth, PA. Therefore, relying solely on Section 8 rental income to cover mortgage payments would be insufficient.
Objection 2: Is there enough renter demand at 29.0%?
The 29.0% figure represents the percentage of households that rent in the area. While this indicates a moderate level of demand, it does not guarantee that all rental units will be occupied. The key here is understanding the local market dynamics. A lower percentage of renters might suggest a competitive environment, but it also points to a potentially stable housing market where homeownership is valued. However, the data alone does not provide insight into the specific demand for Section 8 properties. It's advisable to conduct further research into the local rental market trends and vacancy rates.
Objection 3: Will vouchers keep pace with market rents of $2,871?
The FMR of $2230 is notably lower than the market rent of $2,871. This gap suggests that voucher holders might struggle to find suitable housing in the area, unless they can supplement the difference. For landlords, this means either accepting a lower rental income or seeking non-voucher tenants who can pay closer to the market rate. The data does not provide information on the growth or stability of the voucher program, so it's important to stay informed about any changes in federal funding that could affect the value of vouchers.
In conclusion, while Narberth, PA presents some challenges for Section 8 investment, particularly with regard to covering mortgage costs and keeping pace with market rents, it also offers opportunities for those willing to navigate these issues carefully. Investors should consider diversifying their portfolios to include both Section 8 and market-rate rentals to balance risk and reward.
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.