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 | $1,270 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $249,977 | 0.66% | D |
| 3BR | $1,950 | $296,479 | 0.66% | D |
| 4BR | $2,160 | $383,871 | 0.56% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 19094 (Woodlyn, PA) for Section 8 should follow this decision tree:
1) Does FMR $1380 (zip FY 2024) clear debt service on a $296,910 property?
It depends. The Fair Market Rent (FMR) of $1380 per month needs to be compared against the total monthly debt service cost of the property, which includes mortgage payments, taxes, insurance, and maintenance. For a property valued at $296,910, if financed at a typical rate with a 20% down payment, the monthly mortgage payment alone could range between $1100 to $1400 depending on interest rates. To determine if $1380 covers all these costs, the landlord must calculate their total debt service.
2) Is market rent $1,251 (Census ACS) above, at, or below FMR?
The market rent of $1,251 is below the FMR of $1380. This means that properties in Woodlyn, PA can potentially command higher rents when occupied by Section 8 tenants, which could be advantageous. However, landlords should also consider the administrative burden and eligibility requirements associated with Section 8 tenancy.
3) Are 32.7% renters + N/A-day days on market (DOM) enough demand?
Yes, the rental rate of 32.7% indicates a moderate level of demand for rental properties. While the days on market (DOM) data is not available, a significant portion of the population being renters suggests there is enough demand to support Section 8 properties. Landlords should also investigate local vacancy rates and trends to further gauge demand stability.
If the FMR of $1380 clears the debt service, and the landlord is willing to accept a slightly lower rent than what is possible with Section 8, then the answer is yes, they should consider buying in ZIP 19094 for Section 8. However, if the debt service exceeds $1380, the landlord should look into other areas where the FMR is higher relative to the cost of property ownership.
The decision ultimately hinges on the landlord's financial situation and willingness to work within the constraints of the Section 8 program. If the numbers align and the landlord is prepared for the potential challenges, Woodlyn, PA presents a viable opportunity.
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.