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 | $2,160 |
| 1 Bedroom | $2,340 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,320 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,340 | $311,718 | 0.75% | D |
| 2BR | $2,790 | $524,359 | 0.53% | F |
| 3BR | $3,320 | $1,025,254 | 0.32% | F |
| 4BR | $3,670 | $1,538,945 | 0.24% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 19106, Philadelphia, PA, presents a unique opportunity for both landlords and small-portfolio investors. The median home value stands at $396,938, indicating a stable price point that has remained resilient against broader market fluctuations. With only 0.2% of listings experiencing reductions, it's evident that sellers maintain significant pricing power. This minimal reduction rate suggests a seller's market where homes are likely to sell close to or above their asking price.
The median Days on Market (DOM) of 46 days further supports this thesis. A low DOM signifies strong demand and quick sales, which are hallmarks of a robust market. Homes selling quickly imply that buyers are willing to pay the listed price without extended negotiation periods. Therefore, landlords and investors can expect to maintain their pricing strategies without significant adjustments, leveraging the current market conditions to secure higher rents or sale prices when the time comes.
On the rental side, the Fair Market Rent (FMR) for ZIP 19106 in fiscal year 2024 is set at $2,610, while the Zillow Observed Rental Index (ZORI) currently stands at $2,172. This gap between the FMR and the actual market rent suggests potential for rental growth. Landlords can consider increasing rents gradually to align with the FMR, capturing the upward trend without alienating tenants. However, it's important to note that this should be done responsibly and in accordance with local regulations.
For long-term investors, the setup in ZIP 19106 implies a steady appreciation thesis. The combination of a stable median home value, strong seller's market dynamics, and the potential for rental increases points towards an environment where property values are likely to grow, albeit modestly. This makes it a suitable area for those looking to hold onto properties for extended periods, benefiting from both rental income and gradual capital appreciation.
In conclusion, the current data paints a picture of a market where pricing power remains firmly with the sellers. Landlords and investors can leverage this to their advantage by maintaining competitive listing prices and gradually adjusting rents to capture the increasing fair market value. The setup indicates a positive outlook for those who are prepared to ride out the market's natural progression over the next 12-24 months.
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.