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 | $1,300 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $118,462 | 1.42% | A |
| 3BR | $2,000 | $134,925 | 1.48% | A |
| 4BR | $2,210 | $163,884 | 1.35% | A |
U.S. Census Bureau data (2024)
The classification of ZIP 19142 in Philadelphia, PA, on the axes of yield and stability reveals a market that offers a balance between potential returns and tenant reliability.
The Federal Market Rent (FMR) for ZIP 19142 in fiscal year 2024 is set at $1,420, which is higher than the current market rent of $1,375. This indicates a positive yield for properties participating in the Section 8 program. However, the median home value in the area is $133,504, suggesting that property values are relatively low compared to the rent figures, which can affect the overall profitability when considering investment costs.
Stability is influenced by several factors including the percentage of renters, days on market (DOM), and average income levels. In ZIP 19142, 54.1% of residents are renters, which is a moderate figure. The average DOM of 31 days suggests a reasonably stable rental market where units are occupied promptly. Additionally, the average income of $38,376 is a key indicator of financial stability among tenants, although it is lower than the national average, which could impact the ability of tenants to consistently pay rent.
Given these metrics, ZIP 19142 is best classified as a steady-cashflow zone. While the yield is positive due to the FMR being slightly above the market rent, the relatively low home values and average income levels suggest that the market is not conducive to high-risk, high-reward strategies typical of a flip-style market. Instead, the combination of moderate renter occupancy and quick turnover rates points towards a market where landlords can expect consistent, though not exceptionally high, cash flows from their investments.
To summarize, the yield advantage comes from the FMR being $1,420, exceeding the market rent of $1,375, while stability is maintained through a 54.1% rental rate and a 31-day DOM. Despite the lower average income, the market presents a reliable opportunity for those seeking steady cash flow rather than high-risk speculative gains.
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.