Section 8 Fair Market Rent (FMR) for ZIP 19146 - 2027

Investment Score for ZIP 19146

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	$1,860
1 Bedroom	$2,020
2 Bedrooms	$2,410
3 Bedrooms	$2,870
4 Bedrooms	$3,170
5 Bedrooms	$3,677
6 Bedrooms	$4,118
7 Bedrooms	$4,447
8 Bedrooms	$4,669

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
1BR	$2,020	$326,384	0.62%	D
2BR	$2,410	$393,352	0.61%	D
3BR	$2,870	$366,127	0.78%	D
4BR	$3,170	$621,932	0.51%	F
5BR	$3,677	$581,865	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The ZIP code 19146 in Philadelphia, PA, is a densely populated area with a total population of 41,058 residents. The median household income in this ZIP is notably high at $103,059, which suggests a relatively affluent neighborhood. However, nearly half of the residents (48.8%) are renters, indicating a significant demand for rental housing. The occupancy rate stands at 87.1%, suggesting that the housing stock is mostly occupied but leaves room for some vacancies. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for 2026 in ZIP 19146 is as follows: - 0BR: $1800 - 1BR: $1960 - 2BR: $2330 (which represents 27.1% of the median income) - 3BR: $2790 - 4BR: $3120 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent based on the size of their unit. Comparing these FMRs to actual rents, we find that the Zillow median price for a 2BR property is $385,073. This translates into a price-to-FMR ratio of 13.8x, meaning that the median home value is significantly higher than what is covered by the FMR. This disparity creates several constraints for voucher holders. For instance, a voucher holder with a 2BR unit would have to pay $2330 in rent, which is only a fraction of the actual market rent. This means that landlords who accept Section 8 vouchers might struggle to cover their mortgage payments, maintenance costs, and other expenses if they rely solely on the FMR rates. ### Affordability & Renter Profile Given the high median household income of $103,059, it is likely that many residents in ZIP 19146 can afford market-rate rents. However, the 48.8% renter population indicates that there is still a substantial portion of the community that relies on rental housing. With 2BR units priced at $385,073, the average rent for such units would be around $1,604 per month (assuming a 4% cap rate), which is well above the FMR of $2330. The fact that the FMR for a 2BR unit is only 27.1% of the median income suggests that the market is tight for low-income renters. These individuals would find it challenging to secure housing without assistance, given the high market prices. Therefore, the ZIP is likely to be a tight market for those relying on Section 8 vouchers. ### Investor Angle From an investor perspective, accepting Section 8 vouchers in ZIP 19146 could be challenging due to the high cost of properties and the relatively low FMR compared to market rates. For example, a 2BR unit priced at $385,073 would generate approximately $1,604 in monthly rent at a 4% cap rate. If a landlord accepts a Section 8 voucher, they would receive $2330 per month, which is higher than the market rent but still might not cover all expenses, especially considering the high purchase price. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical operating expenses, including property taxes, insurance, maintenance, and vacancy rates. Assuming a conservative estimate of 30% of the FMR for operating expenses, the net cash flow would be: - 2BR: $2330 - ($2330 * 0.30) = $1,631 This figure is slightly above the estimated market rent of $1,604, but the difference is minimal and might not account for other unforeseen costs. Therefore, while it is possible to achieve positive cash flow, the margin is slim. In terms of investment grade, ZIP 19146 would likely be rated as moderate to low for Section 8-focused investors. The high property values and the tight market conditions make it less attractive compared to areas with lower median home values and higher FMRs relative to income. ### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like 0BR and 1BR apartments. These units have lower FMRs ($1800 and $1960 respectively) and are more likely to be affordable for voucher holders. Additionally, smaller units tend to have lower operating costs, making them more financially viable. 2. **Consider Multi-Family Properties**: Single-family homes in this ZIP are expensive, and the FMR might not cover the full cost of ownership. Multi-family properties, such as duplexes or small apartment buildings, could offer better returns. These properties often have economies of scale, reducing the overall cost per unit. 3. **Explore Renovation Opportunities**: Investors might find opportunities to acquire older properties at lower prices and renovate them to meet modern standards. This approach can potentially increase the rental value and make the property more competitive in the market. ### Bottom Line For Section 8-focused investors, ZIP 19146 presents a challenging environment due to the high property values and the relatively low FMR compared to market rates. While it is possible to achieve positive cash flow, the margins are thin, and the investment grade is moderate to low. Therefore, the recommendation for investors is to **Skip** this ZIP unless they can find highly undervalued properties or smaller units that offer better financial viability. In summary, the high median household income and tight market conditions in ZIP 19146 make it less favorable for investors focusing on Section 8 vouchers. The best strategy would be to look for more affordable markets where the FMR covers a larger portion of the property's value.

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.