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 | $1,760 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $2,980 |
| 5 Bedrooms | $3,457 |
| 6 Bedrooms | $3,872 |
| 7 Bedrooms | $4,182 |
| 8 Bedrooms | $4,391 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,270 | $297,985 | 0.76% | D |
| 3BR | $2,700 | $361,965 | 0.75% | D |
| 4BR | $2,980 | $416,357 | 0.72% | D |
| 5BR | $3,457 | $463,675 | 0.75% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 19127, located in Philadelphia, PA, are defined by the Specific Area Fair Market Rent (SAFMR) for a two-bedroom apartment, which is set at $2290 for fiscal year 2024. This SAFMR rate is specifically tailored for this ZIP code, reflecting the unique rental conditions within it. In comparison, the local market rent, measured by Zillow's Observed Rent Index (ZORI), stands at $2,252 for the same type of unit. Here’s how the voucher system works for landlords:
A Section 8 voucher covers the difference between the tenant’s portion and the total rent. For ZIP 19127, the tenant is expected to pay 30% of their income towards rent. If the tenant’s monthly income is $1,500, they would pay $450 toward rent. The remainder of the rent, up to the SAFMR rate of $2290, is covered by the voucher program. Therefore, the voucher would reimburse the landlord $1,840 ($2290 - $450).
In addition to the base rent, the voucher also includes utility allowances. These vary but typically cover a portion of the tenant’s energy, water, and other household bills. Assuming an average utility allowance of $200 per month, the total reimbursement from the voucher program would be $2040 ($1,840 + $200).
This means that for a two-bedroom apartment in ZIP 19127, the landlord can expect a reimbursement of $2040 if the tenant’s income is $1,500 per month. Given that the local market rent is slightly below the SAFMR at $2,252, there is a potential reimbursement gap where landlords might receive less than the market rate. However, the gap is minimal at $212 ($2252 - $2040), making Section 8 vouchers a viable option for maintaining occupancy rates.
Landlords should also note that the SAFMR rate of $2290 applies only to this specific ZIP code, meaning that the reimbursement levels will vary if they manage properties in different areas. It’s important to keep track of these rates and adjust expectations accordingly.
In summary, while the SAFMR rate for ZIP 19127 is $2290, and the local market rent is $2,252, the typical reimbursement for a landlord with a two-bedroom property under a Section 8 voucher arrangement is $2040. This leaves a small gap of $212, indicating that landlords can still achieve nearly market-rate returns despite the voucher system.
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.