Section 8 Fair Market Rent (FMR) for ZIP 19104 - 2027

Investment Score for ZIP 19104

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,490
1 Bedroom	$1,620
2 Bedrooms	$1,930
3 Bedrooms	$2,300
4 Bedrooms	$2,540
5 Bedrooms	$2,946
6 Bedrooms	$3,300
7 Bedrooms	$3,564
8 Bedrooms	$3,742

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,620	$250,933	0.65%	D
2BR	$1,930	$243,502	0.79%	D
3BR	$2,300	$144,740	1.59%	A+
4BR	$2,540	$287,903	0.88%	C
5BR	$2,946	$498,853	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19104 (Philadelphia, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19104 is set by HUD for the year 2026. For a two-bedroom apartment, the FMR is $1800 per month. This figure represents 55.7% of the median household income in the area, which stands at $38,814. However, the actual rental market price for a two-bedroom unit, according to Zillow, is significantly higher at $245,228, translating to a monthly rent of approximately $2043 based on typical mortgage calculations. The price-to-FMR ratio is 11.4x, indicating that the actual market rents are much higher than the FMR. This means that tenants with Section 8 vouchers face significant constraints when trying to find housing within their budget. The gap between the FMR and the actual market rent for a two-bedroom unit is $243, which can be a substantial burden for voucher holders who must pay the difference out-of-pocket. Additionally, landlords may be hesitant to accept Section 8 vouchers due to the higher administrative costs and potential delays in receiving payments. #### Affordability & Renter Profile ZIP code 19104 has a high percentage of renters at 83.1%, suggesting a strong demand for rental properties. The occupancy rate is also relatively high at 84.6%, indicating that there is little vacancy in the market. Given the median household income of $38,814, many residents likely struggle with housing affordability. The FMR for a two-bedroom unit being only 55.7% of the median income suggests that even if a tenant could secure a Section 8 voucher, they would still need to allocate a significant portion of their income towards housing costs. The tight rental market, combined with the high percentage of renters and low vacancy rates, indicates that there is a strong demand for affordable housing. However, the disparity between FMR and actual market rents suggests that the market is not meeting the needs of low-income households effectively. This mismatch creates a challenging environment for both renters and landlords, where finding affordable units is difficult and accepting vouchers might not be financially viable for some property owners. #### Investor Angle From an investor perspective, the ZIP code 19104 presents a mixed picture. While the FMRs provide a guideline for what is considered affordable housing, the actual market rents are substantially higher. For a two-bedroom unit, the FMR is $1800, but the actual market rent is around $2043. This means that investors who are willing to participate in the Section 8 program will have to accept lower rents compared to the market rate. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a property value of $245,228 and a mortgage rate of 4.5%, the monthly mortgage payment would be approximately $1200. Adding typical maintenance, insurance, and property tax costs, the total monthly expense might be around $1500. At the FMR of $1800, the net cash flow would be $300 per month, which is positive but relatively modest. Given the high price-to-FMR ratio and the administrative challenges of participating in the Section 8 program, the investment grade for this ZIP code is moderate. Investors should carefully evaluate the risks and rewards before committing to such investments. The positive cash flow at FMR levels is attractive, but the potential for higher returns through market-rate rentals is significant. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might find it more feasible to focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1510, while the actual market rent is likely to be higher. This could provide a better balance between the FMR and the market rent, potentially leading to more positive cash flows. 2. **Consider Property Value and Location**: Since the price-to-FMR ratio is very high, investors should carefully choose properties that offer good value for money. A property priced closer to the FMR level would be more financially viable. Additionally, location within the ZIP code can impact rental demand and prices. Properties in areas with better access to public transportation, amenities, and employment centers might command higher rents. 3. **Evaluate Administrative Costs**: Before deciding to accept Section 8 vouchers, investors should thoroughly assess the administrative costs involved. These include application processing, background checks, and ongoing management. If these costs exceed the benefits of stable, government-backed rental income, it might be more advantageous to seek market-rate tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 19104 is to **Hold**. While there is a strong demand for rental properties and a high percentage of renters, the high price-to-FMR ratio and the administrative challenges of the Section 8 program make it a moderate investment opportunity. Investors should carefully weigh the potential for positive cash flow against the risks and costs associated with accepting vouchers. Focusing on smaller units and properties with good value and strategic locations could help mitigate some of these challenges.

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.