Section 8 Fair Market Rent (FMR) for ZIP 19131 - 2027

Investment Score for ZIP 19131

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	$1,490
1 Bedroom	$1,620
2 Bedrooms	$1,930
3 Bedrooms	$2,300
4 Bedrooms	$2,540
5 Bedrooms	$2,946
6 Bedrooms	$3,300
7 Bedrooms	$3,564
8 Bedrooms	$3,742

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
1BR	$1,620	$138,611	1.17%	B
2BR	$1,930	$169,831	1.14%	B
3BR	$2,300	$151,192	1.52%	A+
4BR	$2,540	$194,660	1.3%	A
5BR	$2,946	$419,502	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19131, Philadelphia, PA #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19131 is set by HUD for 2026. The FMRs are as follows: - 0BR: $1390 - 1BR: $1510 - 2BR: $1800 (which is 44.6% of the median household income of $48,393) - 3BR: $2160 - 4BR: $2410 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. For a 2BR unit, Zillow reports a median home value of $164,914, which translates to a monthly rent of approximately $1,374 based on typical rental yields. However, the price-to-FMR ratio of 7.6x suggests that actual market rents are significantly higher than the FMRs. This means that landlords who accept Section 8 vouchers may face challenges in covering their costs, as the FMRs do not reflect the true market value of properties in this area. #### Affordability & Renter Profile ZIP code 19131 has a population of 43,776, with 55.6% of residents being renters. The occupancy rate stands at 85.8%, indicating a relatively tight rental market. Given that 44.6% of the median household income ($48,393) goes towards a 2BR unit at FMR, it is clear that the majority of renters in this area are likely low-income households. These individuals would heavily rely on government assistance such as Section 8 vouchers to afford housing. The high percentage of renters and the tight occupancy rate suggest that there is a strong demand for rental units, particularly those that are affordable. However, the disparity between FMR and actual market rents indicates that many units may be out of reach for those relying solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the key question is whether accepting Section 8 vouchers can provide a positive cash flow. Based on the data, the Zillow median home value for a 2BR unit is $164,914, which implies a monthly rent of around $1,374 if sold at market value. However, the FMR for a 2BR unit is $1,800, which is nearly 31% higher than the implied market rent. Given the price-to-FMR ratio of 7.6x, it is evident that the actual market rents are much higher than the FMRs. This means that landlords who accept Section 8 vouchers may struggle to cover their expenses, especially when considering property taxes, maintenance, and other operational costs. Investment grade in this context would depend on the ability to attract tenants who can pay market rates. Since the FMRs are significantly lower than the market rates, the investment grade for Section 8-focused properties would be considered low unless the landlord can also cater to market-rate tenants or has access to other subsidies. #### Specific Actionable Insights 1. **Renters' Dependence on Government Assistance**: With 55.6% of the population renting and a median household income of $48,393, many residents will require government assistance to afford housing. Investors should be prepared to offer units at FMR levels, which are lower than the actual market rents. 2. **High Price-to-FMR Ratio**: The price-to-FMR ratio of 7.6x for 2BR units highlights the significant gap between FMR and market rents. Landlords accepting Section 8 vouchers must carefully manage their finances to ensure profitability. One actionable step could be to diversify the tenant mix to include both Section 8 voucher holders and market-rate tenants. 3. **Occupancy Rate Consideration**: With an occupancy rate of 85.8%, the market is relatively tight. This suggests that there is a good chance of finding tenants, but the challenge lies in ensuring they can pay the rent. Investors might consider offering incentives or services to attract and retain market-rate tenants alongside Section 8 voucher holders. #### Bottom Line For investors focusing specifically on Section 8 vouchers, the recommendation for ZIP code 19131 is to **skip**. The high price-to-FMR ratio and the tight rental market indicate that properties in this area may not provide sufficient cash flow when rented exclusively to Section 8 voucher holders. Instead, investors should consider areas where the FMRs more closely align with market rents or explore mixed-income strategies to balance financial risks. --- This analysis provides a comprehensive overview of the rental market dynamics in ZIP code 19131, highlighting the challenges and opportunities for investors interested in Section 8 properties. The data clearly shows that while there is a strong demand for rentals, the reliance on government assistance and the high market rents make it a challenging environment for purely Section 8-focused investments.

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.