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 | $1,240 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $201,329 | 0.79% | D |
| 3BR | $1,910 | $233,887 | 0.82% | C |
| 4BR | $2,100 | $273,727 | 0.77% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 19136 (Philadelphia, PA) presents a nuanced landscape for both landlords and small-portfolio investors. With a median home value of $237,065, the area remains relatively affordable compared to other parts of Philadelphia. The fact that only 0.2% of listings have been reduced signals strong seller pricing power, indicating that homes are selling at or near their asking prices. This trend, combined with a 24-day median days on market (DOM), suggests a brisk sales pace, which is favorable for those looking to sell or turn over properties quickly.
However, the data also reveals an interesting dynamic on the rental side. The Fair Market Rent (FMR) for ZIP 19136 in fiscal year 2024 is set at $1,360, while the actual market rent, as measured by Zillow's Observed Rent Index (ZORI), stands at $1,472. This indicates that the rental market is slightly outpacing government estimates, which could provide landlords with some flexibility in setting rents. However, it also suggests that there is limited room for significant rent increases without potentially alienating tenants.
For long-term investors, the setup in ZIP 19136 implies a steady but modest appreciation thesis. Given the strong seller pricing power and quick turnover times, the market appears resilient to downturns. However, the relatively low median home value and the minor gap between FMR and ZORI indicate that significant capital gains might be harder to achieve. Instead, the focus should be on maintaining consistent cash flows through rental income, leveraging the slightly above-average rental rates to cover mortgage payments and property maintenance costs.
The current market conditions suggest that investors should expect moderate growth in property values, driven primarily by inflation and gradual improvements in the local economy. This stability makes ZIP 19136 a suitable location for buy-and-hold strategies, where the goal is to generate steady returns rather than rapid appreciation. Landlords and small-portfolio investors can benefit from this environment by focusing on property management efficiency and tenant satisfaction, ensuring a continuous stream of rental income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.