Section 8 Fair Market Rent (FMR) for ZIP 19145 - 2027

Investment Score for ZIP 19145

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	$1,410
1 Bedroom	$1,530
2 Bedrooms	$1,830
3 Bedrooms	$2,180
4 Bedrooms	$2,410
5 Bedrooms	$2,796
6 Bedrooms	$3,132
7 Bedrooms	$3,383
8 Bedrooms	$3,552

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	$1,830	$250,693	0.73%	D
3BR	$2,180	$246,602	0.88%	C
4BR	$2,410	$366,806	0.66%	D
5BR	$2,796	$463,892	0.6%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19145 (Philadelphia, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19145 is set by HUD for 2026 as follows: - 0BR: $1390 - 1BR: $1510 - 2BR: $1800 (which is 30.0% of the median household income of $71,965) - 3BR: $2160 - 4BR: $2410 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR unit is $244,009, which translates to a monthly rental cost of approximately $1,133 based on a typical mortgage payment formula (assuming a 4.5% interest rate and a 30-year fixed mortgage). This is much lower than the actual rental costs in the market, which are likely to be higher due to the price-to-FMR ratio of 11.3x. Therefore, the actual rental cost for a 2BR unit would be around $1800 * 11.3 = $20,340 annually, or roughly $1,700 per month. This means that voucher holders face significant constraints in finding affordable housing. The FMR for a 2BR unit is only $1800, but the actual rental costs are nearly double that amount. Consequently, voucher holders may struggle to find units within their budget, especially considering that landlords are not obligated to accept Section 8 vouchers and may prefer higher-paying tenants. #### Affordability & Renter Profile ZIP code 19145 has a population of 43,440, with 42.7% being renters. The occupancy rate is relatively high at 89.5%, indicating a tight rental market where demand exceeds supply. Given the median household income of $71,965, the FMR for a 2BR unit at $1800 represents 30.0% of the median income, which aligns with HUD’s guidelines for affordability. However, the actual rental costs are far above this level, making it challenging for low-income households to afford housing without assistance. The high price-to-FMR ratio suggests that the market is overpriced relative to the income levels of residents. This makes it particularly difficult for individuals relying solely on Section 8 vouchers to find suitable housing. The tight market conditions imply that there is a strong demand for rental properties, but the supply is limited, leading to higher rental prices. #### Investor Angle From an investor perspective, the ZIP code 19145 presents both opportunities and challenges. The FMR for a 2BR unit is $1800, but the actual rental cost is closer to $1,700 per month based on the price-to-FMR ratio. This indicates that if an investor were to purchase a property and rent it out at the FMR, they would likely see positive cash flow. However, the challenge lies in securing tenants who can afford the rent without relying on Section 8 vouchers. Given the high price-to-FMR ratio, it is unlikely that an investor would be able to rent out a property at the FMR and still cover all expenses, including mortgage payments, maintenance, and property taxes. The median Zillow price for a 2BR unit is $244,009, which implies a significant capital investment. If an investor aims to achieve cash flow positivity, they would need to consider renting at rates above the FMR, which could limit their pool of potential tenants to those who do not rely on Section 8 vouchers. The investment grade for this ZIP code would be moderate to low, given the high rental costs relative to the median income. While there is a strong demand for rental properties, the high cost of entry and limited availability of voucher holders willing to pay the FMR make it a less attractive investment for those focusing exclusively on Section 8 tenants. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should consider purchasing properties that can be rented out below the FMR to attract Section 8 voucher holders. For example, a 2BR unit priced at $1,500 per month would be more likely to attract tenants who can only afford up to $1,800 through their vouchers. This approach would ensure better occupancy rates and reduce vacancy risks. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and strong demand for rentals, multi-family properties could offer a more stable investment. A building with multiple units would allow for diversification of tenant types, including some who can pay market rates and others who rely on Section 8 vouchers. This mixed strategy could help balance the financial risks associated with renting exclusively at the FMR. 3. **Engage with Local Real Estate Agents**: To navigate the complexities of the local rental market, investors should work closely with experienced real estate agents who understand the nuances of Section 8 housing in Philadelphia. These agents can provide valuable insights into which neighborhoods have a higher concentration of voucher holders and which landlords are more willing to accept them. #### Bottom Line For investors focused specifically on Section 8 vouchers, the recommendation for ZIP code 19145 is to **Skip**. The high rental costs and limited number of voucher holders willing to pay the FMR make it a challenging environment for achieving positive cash flow. However, for those willing to adopt a mixed strategy or focus on units below the FMR, there might be opportunities to enter the market with a more balanced approach. Overall, the tight rental market and high price-to-FMR ratio suggest that this ZIP code is not ideal for Section 8-focused investments.

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.