Section 8 Fair Market Rent (FMR) for ZIP 19149 - 2027

Investment Score for ZIP 19149

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	$1,470
1 Bedroom	$1,590
2 Bedrooms	$1,900
3 Bedrooms	$2,260
4 Bedrooms	$2,500
5 Bedrooms	$2,900
6 Bedrooms	$3,248
7 Bedrooms	$3,508
8 Bedrooms	$3,683

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	$1,900	$188,461	1.01%	B
3BR	$2,260	$225,585	1%	B
4BR	$2,500	$246,206	1.02%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19149 (Philadelphia, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19149 is set by HUD to help determine the maximum rent that a household receiving a Section 8 voucher can pay. For 2026, the FMRs are as follows: - 0BR: $1400 - 1BR: $1520 - 2BR: $1810 (which is 37.1% of the median household income) - 3BR: $2170 - 4BR: $2420 These figures represent the upper limit for rent subsidies under the Section 8 program. However, it's important to understand how these FMRs compare to actual market rents. The Zillow median price for a 2BR property in ZIP 19149 is $185,033, which translates into a monthly mortgage payment of approximately $850 based on typical financing terms. This means that landlords who are renting out properties at the FMR levels would still need to cover additional costs such as property taxes, insurance, maintenance, and other expenses. Given the Price-to-FMR ratio of 8.5x, it suggests that the median home value is significantly higher than the FMR, indicating that the rental market may be competitive. Landlords might find it challenging to operate at the FMR levels due to the high cost of ownership. The constraint for voucher holders is that they must find housing units where the rent does not exceed the FMR, which can be difficult given the high median home values and potentially higher market rents. #### Affordability & Renter Profile ZIP code 19149 has a population of 56,914, with 43.4% of residents being renters. The occupancy rate stands at 94.1%, suggesting a robust demand for housing in this area. Given the median household income of $58,496, the affordability of housing is a significant concern. A 2BR unit at the FMR level of $1810 represents 37.1% of the median income, which is relatively high but still manageable for many households. The tight market conditions indicate that there is likely a shortage of affordable housing options, especially for those relying on Section 8 vouchers. This could lead to increased competition among renters and potentially higher rents in the market, making it even more challenging for voucher holders to find suitable housing. #### Investor Angle From an investor perspective, operating at the FMR levels can be challenging. The Zillow median price for a 2BR unit is $185,033, and the monthly mortgage payment would typically be around $850. Adding property taxes, insurance, and maintenance costs, the total monthly expenses could easily exceed the FMR. For instance, if we assume a combined cost of $1,000 for taxes, insurance, and maintenance, the total monthly expense would be $1,850, which is already above the FMR for a 2BR unit ($1810). This indicates that the cash flow for investors focusing on Section 8 properties would likely be negative unless they can secure lower-cost financing or reduce other expenses. In terms of investment grade, the high Price-to-FMR ratio of 8.5x suggests that the market is not favorable for investors seeking to generate positive cash flow through Section 8 properties. The high median home values and the tight market conditions make it difficult to achieve profitability solely through rental income at the FMR levels. #### Specific Actionable Insights 1. **Focus on Lower-Cost Financing Options**: Investors should explore alternative financing methods to reduce their monthly mortgage payments. For example, obtaining a loan with a lower interest rate or a longer amortization period could help bring the total monthly expenses closer to the FMR levels. 2. **Consider Multi-Family Properties**: Single-family homes may not be the most profitable option due to the high cost-to-income ratio. Multi-family properties, such as duplexes or small apartment buildings, might offer better cash flow opportunities. These properties can spread the fixed costs over multiple units, potentially allowing each unit to operate closer to the FMR without resulting in negative cash flow. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of vouchers and the likelihood of finding tenants. Additionally, understanding the local regulations and processes can help streamline the leasing process and ensure compliance with all requirements. #### Bottom Line For Section 8-focused investors, the ZIP code 19149 presents a challenging environment. The high median home values and tight market conditions make it difficult to achieve positive cash flow at the FMR levels. Therefore, the recommendation is to **Skip** this ZIP code for now unless investors can find ways to significantly reduce their costs or focus on multi-family properties that can better absorb the financial burden. The current dynamics suggest that the market is not aligned with the goals of generating positive cash flow through 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.