Section 8 Fair Market Rent (FMR) for ZIP 19148 - 2027

Investment Score for ZIP 19148

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	$1,510
1 Bedroom	$1,630
2 Bedrooms	$1,950
3 Bedrooms	$2,320
4 Bedrooms	$2,560
5 Bedrooms	$2,970
6 Bedrooms	$3,326
7 Bedrooms	$3,592
8 Bedrooms	$3,772

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	$1,630	$272,348	0.6%	F
2BR	$1,950	$263,143	0.74%	D
3BR	$2,320	$260,852	0.89%	C
4BR	$2,560	$383,405	0.67%	D
5BR	$2,970	$421,306	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19148 (Philadelphia, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19148 is set by HUD for 2026 as follows: - 0BR: $1450 - 1BR: $1580 - 2BR: $1880 (which represents 27.3% of the median household income) - 3BR: $2250 - 4BR: $2250 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market in ZIP 19148 is significantly higher than these FMRs. For instance, the Zillow median price for a 2BR property is $256,960, which translates into a monthly mortgage payment of approximately $1,368 if financed over 30 years at a 4.5% interest rate. This is already close to the FMR for a 2BR unit ($1880), but it doesn't account for other costs such as maintenance, utilities, and property taxes, which would likely push the total cost above the FMR. Given the high actual rents compared to FMRs, there are significant constraints for voucher holders. They might struggle to find units that fall within their budget, leading to a potential mismatch between available housing and affordable options for those using vouchers. #### Affordability & Renter Profile ZIP 19148 has a population of 50,400, with 34.2% of residents being renters. The occupancy rate stands at 92.2%, indicating a relatively tight rental market. With a median household income of $82,605, the area is moderately affluent, but the high rent-to-income ratio suggests that affordability remains a challenge for many residents, especially those who rely on Section 8 vouchers. The 2BR FMR of $1880 represents only 27.3% of the median income, which means that even without a voucher, renting a 2BR unit is a substantial expense for the average household. Given the high price-to-FMR ratio of 11.4x, it’s clear that the market is not aligned with HUD’s affordability standards. This discrepancy could lead to a situation where voucher holders are forced to live in substandard conditions or in areas with lower quality of life due to the lack of affordable units. #### Investor Angle From an investor perspective, the ZIP code 19148 presents a challenging environment for cash flow positive investments at FMR levels. The FMR for a 2BR unit is $1880, while the Zillow median price of $256,960 implies a monthly mortgage payment of around $1,368. After accounting for additional expenses like property taxes, insurance, and maintenance, the net cash flow is likely to be negative or barely positive. To determine the investment grade, we must consider the overall market dynamics and the potential for rental income growth. Despite the high occupancy rate, the tight market and the mismatch between FMR and actual rents suggest that the area is not ideal for Section 8-focused investors looking for immediate positive cash flow. The high price-to-FMR ratio also indicates that properties are overpriced relative to what voucher holders can afford, making it difficult to attract tenants through the program. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units (0BR and 1BR) might offer better opportunities for positive cash flow. These units have FMRs of $1450 and $1580 respectively, which are closer to the actual mortgage payments based on the Zillow median price. Investors should look into acquiring or developing small studio and one-bedroom apartments to cater to the needs of Section 8 voucher holders. 2. **Consider Subsidized Housing Programs**: Since the market is tight and rents are high, investors might want to explore other subsidized housing programs that offer higher rent subsidies. For example, Low-Income Housing Tax Credits (LIHTC) or other local government incentives could help bridge the gap between FMR and actual rents, making the investment more feasible. 3. **Evaluate Long-Term Potential**: While the current market dynamics make it challenging for immediate cash flow, the long-term potential of the area should be considered. If the ZIP code experiences economic growth or if there are plans for infrastructure improvements, the demand for affordable housing could increase, making the investment more attractive in the future. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 19148 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow. Additionally, the mismatch between FMR and actual rents could result in a limited pool of potential tenants, reducing the attractiveness of the investment. Investors should consider other ZIP codes with more favorable market conditions for Section 8 properties.

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.