Section 8 Fair Market Rent (FMR) for ZIP 19121 - 2027

Investment Score for ZIP 19121

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	$1,240
1 Bedroom	$1,350
2 Bedrooms	$1,610
3 Bedrooms	$1,920
4 Bedrooms	$2,120
5 Bedrooms	$2,459
6 Bedrooms	$2,754
7 Bedrooms	$2,974
8 Bedrooms	$3,123

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	$1,610	$228,671	0.7%	D
3BR	$1,920	$149,902	1.28%	A
4BR	$2,120	$283,901	0.75%	D
5BR	$2,459	$278,080	0.88%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19121 (Philadelphia, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19121 in Philadelphia, Pennsylvania, is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1210 - 1BR: $1320 - 2BR: $1570 (which represents 48.9% of the median household income) - 3BR: $1880 - 4BR: $2100 These FMRs represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it is important to understand how these FMRs compare to actual rents in the area. According to Zillow, the median price for a 2BR property in 19121 is $225,504. This translates to a price-to-FMR ratio of 12.0x, which means that the actual market rents are significantly higher than the FMRs. For instance, if we assume a typical rental yield of 5%, the monthly rent for a $225,504 property would be approximately $940, which is still above the FMR for a 2BR unit at $1570. This discrepancy creates significant constraints for voucher holders. They will likely struggle to find units that accept their vouchers and are within the FMR limits. Landlords who are willing to participate in the Section 8 program must ensure that their rents do not exceed the FMR thresholds, which could limit their profitability in a market where rents are much higher. #### Affordability & Renter Profile ZIP code 19121 has a population of 41,574, with 68.1% of residents being renters. This indicates a strong demand for rental housing in the area. The occupancy rate stands at 86.5%, suggesting that the market is relatively tight, with most available units being occupied. Given the median household income of $38,516, affordability is a critical issue for many residents. The FMR for a 2BR unit at $1570 represents 48.9% of the median income, which is a substantial portion of a household’s budget. This implies that renters in this area are likely to be low-income individuals or families who rely heavily on assistance programs like Section 8 to afford housing. The high percentage of renters and the tight occupancy rate indicate that there is a robust demand for rental properties, but the supply may not be sufficient to meet the needs of all residents, especially those with limited financial resources. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. Given the Zillow median price for a 2BR property at $225,504 and assuming a 5% rental yield, the expected monthly rent would be around $940. However, the FMR for a 2BR unit is $1570, which is considerably higher than the expected market rent based on the median price. To determine if this ZIP code is cash-flow positive, we need to consider the actual market rents. If the actual market rents are indeed higher than the FMRs, then landlords participating in the Section 8 program might face lower profitability compared to those who do not. Additionally, the price-to-FMR ratio of 12.0x suggests that the market rents are substantially higher than the FMRs, indicating that the investment grade for Section 8-focused properties in this ZIP code may be lower due to the limited number of potential tenants who can afford the rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR or 1BR apartments. These units have lower FMRs ($1210 and $1320 respectively), making them more likely to be affordable for voucher holders. This strategy can help maximize the chances of finding tenants who can utilize their vouchers effectively. 2. **Consider Location-Specific Factors**: While the overall market rents are high, there may be pockets within ZIP 19121 where rents are closer to the FMRs. Investors should conduct thorough location-specific analyses to identify areas where rents are more aligned with the FMRs. This could involve looking at neighborhoods with different demographic profiles or areas that are less desirable but still within the ZIP code. 3. **Engage with Local Real Estate Agents**: To better understand the local rental market dynamics, investors should engage with local real estate agents who specialize in the Section 8 program. These agents can provide valuable insights into the specific challenges and opportunities associated with renting to voucher holders in this ZIP code. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 19121 is to **Skip** this market. The high price-to-FMR ratio and the tight occupancy rate suggest that the market is challenging for those relying solely on Section 8 vouchers. While there is a strong demand for rental housing, the limited supply and high rents make it difficult for voucher holders to find suitable units. Investors seeking to maximize cash flow and profitability should look elsewhere where the FMRs are more closely aligned with actual market rents.

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.