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 | $1,160 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $245,122 | 0.61% | D |
| 3BR | $1,790 | $287,903 | 0.62% | D |
| 4BR | $1,970 | $343,666 | 0.57% | F |
| 5BR | $2,285 | $362,556 | 0.63% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,500 for ZIP 19076 (Prospect Park, PA) in fiscal year 2024 can sufficiently cover the mortgage on a home valued at $288,257. According to recent data, the mean price for all housing units in Prospect Park in December 2024 is expected to be $267,272. This suggests that the home value is slightly above average for the area. However, the average 30-year fixed mortgage rate in Prospect Park is currently around 5%. Given these figures, a monthly mortgage payment on a $288,257 home would be approximately $1,570. While this exceeds the FMR by $70, it's worth noting that FMR is based on the median rent, meaning many units could command higher rents.
Another concern could be the level of rental demand, which stands at 41.8%. This percentage indicates that nearly half of the households in Prospect Park are renters, suggesting a reasonable demand for rental properties. However, the data does not provide a complete picture of the competition or vacancy rates in the rental market. It's important to consider that while the demand is present, the saturation of rental properties can affect profitability.
The final objection is whether housing vouchers will keep pace with market rents, which are projected to be around $1,501. Unfortunately, the data does not specify the exact amount of housing vouchers available or their average value in ZIP 19076. Typically, voucher amounts lag behind market rents, but they can still provide a stable source of income. To fully address this concern, one would need to review the local housing authority's policies and funding levels.
In summary, while the FMR of $1,500 is slightly below the estimated mortgage payment of $1,570, the rental market shows sufficient demand with 41.8% of households renting. The challenge lies in ensuring that voucher amounts align with market rents, which requires further investigation into local housing assistance programs.
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.