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 | $305,133 | 0.63% | D |
| 2BR | $2,310 | $319,336 | 0.72% | D |
| 3BR | $2,750 | $414,012 | 0.66% | D |
| 4BR | $3,040 | $550,899 | 0.55% | F |
| 5BR | $3,526 | $530,166 | 0.67% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 19125 in Philadelphia, PA, reveals a unique blend of yield and stability that positions it as a moderate-risk investment opportunity with decent cash flow potential. The Federal Market Rent (FMR) for 2024 is set at $2,070, which is notably higher than the current market rent of $1,794. This discrepancy suggests a potentially lucrative rental market where properties can be rented out above the typical market rate, benefiting from the subsidized housing program.
However, the median home value in the area stands at $371,571, indicating a significant upfront investment for any property acquisition. Given the relatively low percentage of renters at 41.4%, there's a notable segment of homeowners who might be less inclined to participate in the rental market. This could limit the pool of potential tenants and increase competition among landlords.
The days on market (DOM) average is 46 days, which is within a reasonable range but not exceptionally low. This figure implies a balanced market where properties are rented out without excessive delays, contributing to a stable cash flow. Additionally, the median household income in the area is $109,554, providing a solid economic foundation that supports tenant ability to pay rent regularly.
Considering these factors, ZIP 19125 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The higher FMR compared to market rent ensures a good yield, while the median income and DOM figures suggest a relatively stable environment for rental operations. Landlords and small-portfolio investors should weigh the higher initial costs against the promise of consistent returns.
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.