Section 8 Fair Market Rent (FMR) for ZIP 19118 - 2027
Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
Investment Score for ZIP 19118
F
Monthly Rent (2BR)
$2,290
Median Price (2BR)
$599,939
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 | $1,770 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
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 |
| 2BR |
$2,290 |
$599,939 |
0.38% |
F |
| 3BR |
$2,730 |
$634,725 |
0.43% |
F |
| 4BR |
$3,010 |
$1,022,090 |
0.29% |
F |
| 5BR |
$3,492 |
$1,550,799 |
0.23% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$109,649
The median home value in ZIP 19118, Philadelphia, PA, is $887,339, reflecting a robust real estate market. However, investors may have several concerns regarding the feasibility of investing in this area. Let's address these common objections with the available data.
- Will FMR $2240 (zip FY 2024) cover the mortgage on a $887,339 home? The Fair Market Rent (FMR) of $2240 per month is designed to reflect typical rental costs in the area but does not directly correlate with mortgage payments. To accurately assess whether the FMR can cover the mortgage, we need to consider current mortgage rates. According to recent data, average mortgage rates are around 5%. A mortgage payment on an $887,339 home at this rate could be approximately $4,800 per month, which is significantly higher than the FMR. Therefore, relying solely on the FMR to cover the mortgage would not be sufficient.
- Is there enough renter demand at 49.3%? The renter demand in ZIP 19118 stands at 49.3%, indicating that nearly half of the households are renters. While this figure suggests a moderate level of demand, it is essential to understand the local rental market dynamics. For instance, the number of homes sold in January 2026 was 30, up from 24 in the previous year, showing an increase in overall property transactions. This trend might imply growing interest in the area, both from buyers and potential renters. However, the exact level of renter demand and its impact on vacancy rates requires further analysis beyond the provided data.
- Will vouchers keep pace with $1,792 market rents? The Housing Choice Voucher program aims to help low-income families afford decent, safe, and sanitary housing. The current market rent of $1,792 per month in ZIP 19118 is above the FMR, suggesting that landlords might find it challenging to accept vouchers if they do not cover the full market rent. It is crucial to monitor how voucher amounts adjust annually to meet rising market rents. As of now, without specific data on voucher adjustments, it is unclear if they will sufficiently cover the market rents.
In conclusion, while ZIP 19118 presents a strong real estate market with high median home values, investors must carefully consider the financial viability of their investments. Relying on FMR alone is insufficient to cover mortgage payments, and the renter demand, though present, needs to be analyzed further to gauge its impact on rental income stability. Lastly, the adequacy of housing vouchers to support market rents remains uncertain and should be monitored closely.
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.