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 | $1,310 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $285,615 | 0.6% | F |
| 3BR | $2,030 | $328,558 | 0.62% | D |
| 4BR | $2,230 | $346,387 | 0.64% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1500 for ZIP 19152 in Philadelphia, PA, for fiscal year 2024 will sufficiently cover the mortgage on a $322,156 home. To address this, let's consider the average mortgage payment in the area. According to recent data from SmartAsset, the average monthly mortgage payment for a 30-year fixed-rate mortgage in Philadelphia is around $1,400. This figure is based on current rates and assumes a 20% down payment. Given that the FMR is $1500, it would indeed cover the mortgage payment with a slight surplus, making it feasible for landlords to maintain profitability.
The investor may also wonder if the 39.3% rental demand rate is sufficient. Data from Zillow indicates that there are currently 10 single-family rental listings available in ZIP 19152. While this percentage might seem low, it is important to note that rental demand is often driven by the availability of affordable units and the overall economic conditions of the area. In ZIP 19152, the average income of a resident is $29,204 per year, which suggests that many residents rely on affordable housing options. Therefore, the 39.3% rental demand rate is likely to be met given the need for affordable housing in the area.
Another concern could be whether housing vouchers will keep pace with the $1,556 market rents. Based on recent trends, the usage of housing vouchers in Philadelphia has been relatively stable. However, the specific data for ZIP 19152 is not readily available. Generally, the voucher amount is adjusted annually based on HUD guidelines, which aim to reflect the local cost of living and rental market conditions. While it is difficult to predict exact future adjustments, historically, vouchers have increased in line with inflation and market trends. It is advisable to monitor local HUD announcements for any updates on voucher amounts.
In summary, while some concerns may arise regarding the coverage of mortgage payments, rental demand, and voucher sufficiency, the data suggests that the FMR of $1500 can cover the mortgage, the rental demand rate aligns with the economic reality of the area, and vouchers tend to adjust in line with market conditions. Landlords and investors should remain vigilant to any changes in local housing policies and market trends.
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.