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 | $1,230 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $138,856 | 1.15% | B |
| 3BR | $1,890 | $175,670 | 1.08% | B |
| 4BR | $2,090 | $228,460 | 0.91% | C |
| 5BR | $2,424 | $250,540 | 0.97% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 19138 in Philadelphia, PA, reveals a market that offers a moderate balance between yield and stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,490, which is slightly below the market rent of $1,568. This suggests a reasonable rental income potential with a slight edge towards market rates. However, the median home value in this area is significantly higher at $178,155, indicating that the purchase price of properties is not aligned with the rental yields, thus reducing overall yield.
On the stability axis, ZIP 19138 presents a mixed picture. With 29.1% of residents being renters, there is a notable but not overwhelming proportion of tenants, suggesting a stable demand for rentals. The median household income is $57,744, which is a key factor in assessing the ability of residents to pay rent consistently. While this income figure is not exceptionally high, it does provide a foundation for predictable cash flow, assuming the rental prices are reasonably set.
The lack of data on days on market (DOM) makes it challenging to fully assess the stability of property turnover, but typically, areas with a significant portion of renters tend to have quicker property turnovers, which can be beneficial for landlords looking to maintain consistent occupancy.
Given these figures, ZIP 19138 leans more towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The FMR and market rents are relatively close, and while the median home value is high, the rental income is sufficient to cover costs and generate modest returns. The rental population and income levels support a stable environment for maintaining long-term tenancies.
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.