Section 8 Fair Market Rent (FMR) for ZIP 19139 - 2027

Investment Score for ZIP 19139

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	$1,210
1 Bedroom	$1,310
2 Bedrooms	$1,560
3 Bedrooms	$1,860
4 Bedrooms	$2,050
5 Bedrooms	$2,378
6 Bedrooms	$2,663
7 Bedrooms	$2,876
8 Bedrooms	$3,020

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
2BR	$1,560	$111,840	1.39%	A
3BR	$1,860	$117,395	1.58%	A+
4BR	$2,050	$161,951	1.27%	A
5BR	$2,378	$294,387	0.81%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19139 (Philadelphia, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 19139 in Philadelphia, PA, for 2026 are as follows: - 0BR: $1160 - 1BR: $1260 - 2BR: $1500 - 3BR: $1800 - 4BR: $2010 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, it is important to understand how these FMRs compare to actual rents in the area. The Zillow median price for a 2BR property is $111,176, which translates into a monthly rental cost based on typical mortgage rates and property management costs. Given the Price-to-FMR ratio of 6.2x, we can infer that the actual rental prices are significantly higher than the FMRs. For example, if the median home value of $111,176 were to be rented out at a typical rate of 1% per month, the monthly rental would be approximately $1112. This is already below the FMR for a 2BR unit but still above the typical rental cost for a 2BR unit in the area. This discrepancy means that voucher holders face significant constraints in finding affordable housing. They must either find units that are priced below the FMR or negotiate with landlords who are willing to accept the voucher amount. Given the high occupancy rate of 80%, there is limited availability of vacant units, making it even harder for voucher holders to secure housing. #### Affordability & Renter Profile ZIP code 19139 has a population of 43,090, with 61.2% of residents being renters. This indicates a strong demand for rental properties in the area. The median household income is $40,947, and the FMR for a 2BR unit is $1500, which represents 44.0% of the median income. This suggests that the majority of residents are struggling to afford housing, especially those relying solely on their income without additional subsidies. Given the high percentage of renters and the relatively low median income, this is likely a tight market where competition for affordable units is fierce. The occupancy rate of 80% supports this notion, indicating that most available units are already occupied. This tight market condition makes it challenging for new renters to enter the market, particularly those with limited financial resources. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. Given the high occupancy rate and the strong demand for rental properties, there is potential for positive cash flow if investors can secure properties at or below the FMR. However, the Price-to-FMR ratio of 6.2x suggests that the actual purchase price of properties is much higher than what the FMR would support in terms of rental income. For instance, a 2BR property with a median value of $111,176 would need to generate a monthly rental income of around $1112 to break even on a typical mortgage payment. This is significantly lower than the FMR of $1500, but it also implies that the rental market is robust enough to sustain higher rents. The investment grade for this ZIP code would be considered moderate to high risk due to the high purchase prices relative to FMRs. Investors should carefully evaluate the local market dynamics and consider the potential for vacancy and renter turnover, especially given the reliance on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high Price-to-FMR ratio, investors might want to focus on smaller units such as 0BR or 1BR apartments. These units have FMRs of $1160 and $1260 respectively, which are lower than the typical mortgage payments for properties in this ZIP code. By targeting smaller units, investors can potentially achieve better cash flow while still catering to the needs of voucher holders. 2. **Negotiate with Landlords**: Since the actual rental prices are much higher than the FMRs, investors should consider negotiating with landlords to accept Section 8 vouchers. This could involve offering incentives or providing assurances about timely rent payments. Additionally, investors should explore partnerships with local housing authorities to ensure a steady stream of tenants. 3. **Evaluate Property Management Costs**: With the high occupancy rate, property management costs can be a significant factor in determining profitability. Investors should conduct thorough due diligence on the ongoing costs associated with managing properties in this ZIP code, including maintenance, utilities, and administrative expenses. This will help in assessing whether the FMR levels can support a positive cash flow after accounting for all expenses. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 19139 is to **Hold**. While there is a strong demand for rental properties and a high occupancy rate, the high purchase prices relative to FMRs make it difficult to achieve positive cash flow. Investors should carefully consider the risks and focus on smaller units or negotiate with landlords to improve their chances of success. However, given the tight market conditions and the significant portion of the population relying on rentals, holding existing properties or investing cautiously in smaller units could be a viable strategy.

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.