Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,310 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
To determine if you should buy in ZIP code 19113 for Section 8 investment, follow this decision tree based on the provided data:
Step 1: Evaluate if the Fair Market Rent (FMR) of $1600 can cover your debt service. If you cannot find a property where this FMR clears the debt service, then the answer is No. Do not proceed with purchasing in this area unless you can secure a property that meets this criterion.
Step 2: Assess the market rent relative to the FMR. If the market rent is above $1600, this indicates a potentially profitable situation outside of Section 8. If the market rent is exactly $1600, you will break even with Section 8 tenants. If the market rent is below $1600, you might struggle to cover costs without Section 8 subsidies. In this case, the answer is It Depends on your ability to manage properties effectively and your tolerance for lower rents.
Step 3: Consider the demand factors. If the percentage of renters is high and the days on market (DOM) is low, there is strong demand for rental properties. Conversely, if the percentage of renters is low and DOM is high, the demand is weak. For example, if 60% of residents are renters and DOM averages 30 days, the demand is robust, leading to a Yes. However, if only 40% of residents are renters and DOM is over 60 days, the demand is insufficient, resulting in a No.
The final decision hinges on the intersection of these factors. A clear "Yes" emerges when FMR covers debt service, market rent is at or above FMR, and there is strong tenant demand. A "No" is evident when any of these conditions fail. "It Depends" applies when some conditions are met but others are not, requiring further analysis into property management skills, market trends, and personal financial goals.
Data Sources: FMR data from HUD (2027).
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.