Section 8 Fair Market Rent (FMR) for ZIP 19144 - 2027

Investment Score for ZIP 19144

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	$1,290
1 Bedroom	$1,400
2 Bedrooms	$1,670
3 Bedrooms	$1,990
4 Bedrooms	$2,190
5 Bedrooms	$2,540
6 Bedrooms	$2,845
7 Bedrooms	$3,073
8 Bedrooms	$3,227

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	$1,670	$133,061	1.26%	A
3BR	$1,990	$149,468	1.33%	A
4BR	$2,190	$222,716	0.98%	C
5BR	$2,540	$346,888	0.73%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19144 (Philadelphia, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19144 is set by HUD to help determine the maximum rent that can be charged to tenants using Section 8 vouchers. For 2026, the FMRs are as follows: - 0BR: $1250 - 1BR: $1360 - 2BR: $1620 (36.6% of median income) - 3BR: $1940 - 4BR: $2170 These FMRs represent the maximum amount that landlords can charge to tenants who use Section 8 vouchers. However, it is important to understand how these FMRs compare to actual rents in the area. The Zillow median price for a 2BR property in ZIP 19144 is $129,617, which translates to a monthly mortgage payment of approximately $600-$700, depending on interest rates and loan terms. This suggests that the actual rents charged in the market could be higher than the FMRs, especially considering the price-to-FMR ratio of 6.7x for 2BR properties. Given the high price-to-FMR ratio, there is a significant gap between the purchase price and the rent that can be charged under the FMR guidelines. This means that landlords who rely solely on Section 8 vouchers might face challenges in covering their mortgage payments, maintenance costs, and other expenses. The constraints for voucher holders include limited options for housing within the FMR limits, which could lead to competition for available units. #### Affordability & Renter Profile ZIP code 19144 has a population of 50,580, with a median household income of $53,161. A notable 62.8% of residents are renters, indicating a strong demand for rental properties. The occupancy rate stands at 92.2%, suggesting that the market is relatively tight, with few vacant units available. The affordability of housing is a critical issue in this area, as the FMR for a 2BR unit represents 36.6% of the median income. This indicates that many residents, particularly those relying on Section 8 vouchers, may struggle to find affordable housing options. Given the high percentage of renters and the limited supply of units, competition for available rentals is likely intense. #### Investor Angle From an investor’s perspective, the key question is whether the ZIP code can generate positive cash flow at the FMR levels. With the Zillow median price for a 2BR property being $129,617 and the FMR for a 2BR unit being $1620, the price-to-FMR ratio of 6.7x suggests that the market is overpriced relative to the FMR. To assess cash flow, we need to consider the monthly mortgage payment, property taxes, insurance, and maintenance costs. Assuming a conservative estimate of a 4.5% interest rate and a 20% down payment, the monthly mortgage payment would be around $650. Adding typical property taxes ($100), insurance ($50), and maintenance costs ($100), the total monthly expenses would be approximately $900. At an FMR of $1620, the net cash flow would be $720 per month, which is positive but may not cover all expenses if they are higher than estimated. The investment grade for this ZIP code is moderate due to the high price-to-FMR ratio. While there is potential for positive cash flow, the risk of not covering all expenses remains, especially if the actual market rents exceed the FMR significantly. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have lower FMRs ($1250 and $1360 respectively) and may offer better cash flow opportunities. Additionally, smaller units tend to be more affordable and easier to manage. 2. **Consider Location-Specific Factors**: Within ZIP 19144, certain neighborhoods may offer better rental opportunities due to proximity to amenities, public transportation, or job centers. Investors should conduct thorough location-specific research to identify areas where the demand for Section 8 units is highest and competition is lower. 3. **Explore Non-Section 8 Rental Options**: Given the tight market and high competition for Section 8 units, investors might also consider renting to non-voucher holders. This could provide higher rental income, though it would require a different tenant screening process and potentially different marketing strategies. #### Bottom Line For Section 8-focused investors, ZIP code 19144 presents a mixed picture. While there is a strong demand for rental properties, the high price-to-FMR ratio and tight market conditions pose significant challenges. The recommendation for this ZIP code is to **Hold**. Investors should carefully evaluate their portfolio and consider diversifying into smaller units or exploring non-Section 8 rental opportunities to mitigate risks and improve cash flow. --- This analysis provides a detailed overview of the rental market dynamics, affordability concerns, and investment considerations for ZIP code 19144 based on the provided data. The insights are grounded in specific figures and percentages to ensure accuracy and relevance.

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.