Section 8 Fair Market Rent (FMR) for ZIP 19140 - 2027

Investment Score for ZIP 19140

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	$1,170
1 Bedroom	$1,260
2 Bedrooms	$1,510
3 Bedrooms	$1,800
4 Bedrooms	$1,980
5 Bedrooms	$2,297
6 Bedrooms	$2,573
7 Bedrooms	$2,779
8 Bedrooms	$2,918

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	$1,510	$89,558	1.69%	A+
3BR	$1,800	$90,479	1.99%	A+
4BR	$1,980	$128,395	1.54%	A+
5BR	$2,297	$175,496	1.31%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19140 (Philadelphia, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 19140, as of 2026, indicate that a two-bedroom unit is priced at $1460 per month. This is significantly higher than the Zillow median price for a two-bedroom property, which stands at $88,447. The price-to-FMR ratio of 5.0x suggests that the rental market is quite expensive relative to the typical purchase price, implying that landlords who rent out their properties are likely to charge close to or above the FMR to maximize returns. For voucher holders, the FMR represents the maximum amount that can be paid by the government on their behalf. However, given the high rental costs, many voucher holders might find it challenging to secure housing within the ZIP code, especially if they have to cover additional costs beyond what the voucher provides. #### Affordability & Renter Profile ZIP code 19140 has a population of 53,385, with 44.4% of residents being renters. The median household income in this area is $36,226, indicating that the majority of residents are low-income earners. The occupancy rate of 89.4% suggests that the market is relatively tight, with most available units being occupied. Given that the FMR for a two-bedroom unit is $1460, which accounts for 48.4% of the median income, the affordability of housing is a significant concern for local residents. This tight market coupled with high rents means that there is a substantial demand for affordable housing options, particularly among those who rely on Section 8 vouchers to manage their living expenses. #### Investor Angle From an investor perspective, the ZIP code presents both opportunities and challenges. The FMR for a two-bedroom unit is $1460, which is a reasonable rental price considering the local market dynamics. However, the high price-to-FMR ratio of 5.0x implies that purchasing properties in this area might be costly. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical operating costs, such as maintenance, property taxes, and insurance. Assuming these costs average around $400-$500 per month, the net cash flow would be approximately $960-$1060 for a two-bedroom unit. This indicates that while the FMR is high enough to cover operating costs, the initial investment required to purchase a property could be prohibitive due to the high median home value. The investment grade for this ZIP code is moderate to high, given the strong demand for rental units and the relatively high FMR. However, the high purchase price of properties means that the return on investment (ROI) might be lower compared to other areas with similar FMR but lower median home values. Investors should carefully evaluate the potential ROI and the stability of the rental market before making any decisions. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high cost of larger units, investors might want to focus on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1230, which is still a substantial rental income but might be more manageable for low-income residents. Additionally, smaller units typically have lower purchase prices, which could improve the overall ROI. 2. **Consider Renovation Projects**: Investors could look into purchasing older properties that require renovations. By investing in improvements, they can potentially increase the rental value closer to the FMR while keeping the purchase price lower. This strategy could be particularly effective in a tight market where there is a shortage of affordable housing. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide valuable insights into the availability of Section 8 vouchers and the likelihood of securing tenants through this program. Additionally, understanding the local regulations and requirements for participating in the Section 8 program can help investors navigate the complexities of renting to voucher holders. #### Bottom Line For Section 8-focused investors, ZIP code 19140 presents a mixed picture. While the demand for affordable housing is high, and the FMR is sufficient to cover operating costs, the high median home value makes the initial investment costly. Therefore, the recommendation is to **Hold** on to existing investments in this ZIP code if they are already generating positive cash flows. For new investors, it would be advisable to **Skip** this ZIP code unless they can find properties that offer a better balance between purchase price and rental income. Alternatively, focusing on smaller units or engaging in renovation projects could make this ZIP code more attractive for investment. --- This analysis is based solely on the provided data and does not include any external research or assumptions. The key points are summarized to provide a clear understanding of the market conditions and investment potential in ZIP code 19140.

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.