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 | $1,790 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,750 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,930 | $309,425 | 0.62% | D |
| 2BR | $2,310 | $421,264 | 0.55% | F |
| 3BR | $2,750 | $586,275 | 0.47% | F |
| 4BR | $3,040 | $725,974 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 19123 in Philadelphia, PA, presents a unique challenge for renters given the local economic conditions and rental market dynamics. The median household income stands at $102,106, which seems substantial; however, it must be carefully evaluated against the cost of living, particularly housing.
The market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $2,105 per month. This figure represents the typical rent a household might pay without any assistance. Comparatively, the Fair Market Rent (FMR) for ZIP 19123 in fiscal year 2024 is $2,350, which is the amount the government deems appropriate for Section 8 vouchers to cover. These numbers suggest that while the ZORI is slightly below the FMR, both are significant expenses relative to the median income.
In ZIP 19123, 64.9% of the 19,681 residents are renters. This high percentage indicates a robust demand for rental properties, but also highlights the potential strain on households' budgets. The affordability gap between the median income and the ZORI/FMR means that many renters rely heavily on financial assistance such as Section 8 vouchers to secure housing.
For landlords, this scenario implies strong competition for tenants who can afford the market rate without subsidies. The reliance on government support to meet housing costs underscores the importance of being prepared to accept voucher payments. Landlords should weigh the benefits of accepting voucher payments, including a guaranteed portion of rent from the government, against the administrative requirements and potential delays in receiving payments.
The takeaway for landlords is clear: in ZIP 19123, where the majority of residents are renters and the cost of housing is a significant portion of their income, being flexible with voucher acceptance can be a strategic advantage. It ensures a steady stream of tenants and minimizes vacancy rates, which is crucial for maintaining a profitable portfolio.
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.