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 | $1,580 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,710 | $182,894 | 0.93% | C |
| 2BR | $2,040 | $234,070 | 0.87% | C |
| 3BR | $2,430 | $463,604 | 0.52% | F |
| 4BR | $2,680 | $695,371 | 0.39% | F |
| 5BR | $3,109 | $889,811 | 0.35% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 19086, located in Wallingford, PA, must be carefully considered. First, tenant turnover could be an issue due to the difference between the market rent of $2,059 and the Fair Market Rent (FMR) set at $1,890 for fiscal year 2024. This discrepancy might lead to frequent changes in tenants as they seek to maximize their voucher benefits.
Second, there is a significant exposure to vacancies. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long properties might remain unoccupied. Vacancy periods can result in lost rental income and increased management costs.
Third, the deferred maintenance risk is substantial. With a typical home value of $496,639 and a median household income of $148,920, landlords must ensure that properties meet the necessary standards for Section 8 eligibility without overextending their financial resources on maintenance and repairs.
However, these risks are somewhat mitigated by the high renter density in the area. The 11.3% renter share indicates a robust demand for rental housing, particularly among those who rely on Section 8 vouchers. This high density of renters typically translates into a steady stream of potential tenants, reducing the likelihood of extended vacancies.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the strong demand for rental housing in ZIP 19086 suggests a moderate risk for a first-time Section 8 landlord. Careful management and a thorough understanding of local market conditions will be essential to navigate these risks effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.