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 | $1,930 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,490 |
| 3 Bedrooms | $2,970 |
| 4 Bedrooms | $3,270 |
| 5 Bedrooms | $3,793 |
| 6 Bedrooms | $4,248 |
| 7 Bedrooms | $4,588 |
| 8 Bedrooms | $4,817 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,090 | $205,224 | 1.02% | B |
| 2BR | $2,490 | $365,167 | 0.68% | D |
| 3BR | $2,970 | $627,144 | 0.47% | F |
| 4BR | $3,270 | $968,421 | 0.34% | F |
| 5BR | $3,793 | $1,572,406 | 0.24% | F |
U.S. Census Bureau data (2024)
Newtown Square, PA, located in ZIP code 19073, is characterized by a relatively affluent residential environment with a total population of 21,915. Only 21.2% of residents are renters, indicating a predominantly owner-occupied community. The area boasts a high median household income of $134,839, reflecting a well-to-do demographic. Median home values are also impressively high at $754,487, underscoring the premium nature of the housing market in this region.
The rent economics in Newtown Square present an interesting contrast. The Fair Market Rent (FMR) for ZIP code 19073 for fiscal year 2024 is set at $2,170, which is notably lower than the market rent, measured by Zillow's Observed Rent Index (ZORI), at $3,071. This discrepancy highlights the potential for significant rental income above the government-subsidized rates for those willing to engage with the Section 8 program.
Given these conditions, Newtown Square is likely to be more appealing to hands-on value-add buyers rather than hands-off operators. The disparity between FMR and market rents suggests opportunities for landlords who can manage properties effectively to capture higher returns. However, the relatively low percentage of renters and the high median income indicate a market where demand for subsidized housing may be limited. Therefore, successful investment would require careful tenant selection and property management to leverage the full economic potential of the area.
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.