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 | $1,870 |
| 1 Bedroom | $2,030 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $2,880 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,030 | $317,519 | 0.64% | D |
| 2BR | $2,420 | $410,566 | 0.59% | F |
| 3BR | $2,880 | $573,217 | 0.5% | F |
| 4BR | $3,180 | $687,812 | 0.46% | F |
| 5BR | $3,689 | $614,292 | 0.6% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 19147 in Philadelphia, PA reveals key insights for landlords and small-portfolio investors. First, let's address whether the rent math works. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $2300. However, the market rent, as measured by Zillow's Owner Occupied Rental Index (ZORI), stands at $1,940. This discrepancy suggests that landlords might struggle to achieve the FMR through market rents alone, indicating a potential gap between government estimates and actual market conditions.
Moving on to acquisition affordability, the median home value in ZIP 19147 is $483,717. This figure represents a significant investment, but the average Days on Market (DOM) of 26 days and a price-cut share of just 0.2% suggest that homes sell quickly and rarely need to be discounted. These factors indicate a robust local housing market where properties are in high demand, making acquisitions relatively straightforward despite the higher median values.
Finally, assessing tenant demand, ZIP 19147 has a population of 39,704, with 46.7% of residents being renters. This substantial renter share points to a strong tenant pool, which is crucial for maintaining occupancy rates and ensuring steady rental income. Given the sizeable number of potential tenants, landlords can expect consistent demand for rental properties.
In summary, while the rent math does not fully align with market conditions, the rapid sale of properties and high renter share make ZIP 19147 a promising area for investment. The quick turnover and minimal need for price adjustments suggest that acquiring properties here will be efficient. With nearly half of the population renting, there is ample demand to support rental operations. Landlords and investors should focus on pricing strategies that balance market realities with the desire to maximize returns, leveraging the strong tenant base to their advantage.
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.