Section 8 Fair Market Rent (FMR) for ZIP 19320 - 2027

Investment Score for ZIP 19320

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	$1,430
1 Bedroom	$1,550
2 Bedrooms	$1,850
3 Bedrooms	$2,200
4 Bedrooms	$2,430
5 Bedrooms	$2,819
6 Bedrooms	$3,157
7 Bedrooms	$3,410
8 Bedrooms	$3,581

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,550	$276,863	0.56%	F
2BR	$1,850	$303,543	0.61%	D
3BR	$2,200	$352,627	0.62%	D
4BR	$2,430	$502,487	0.48%	F
5BR	$2,819	$573,745	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19320 (Coatesville, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 19320, as provided by HUD for 2026, are as follows: - 0BR: $1440 - 1BR: $1560 - 2BR: $1860 (which is 24.6% of the median household income) - 3BR: $2230 - 4BR: $2490 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market in Coatesville, PA, may present challenges for voucher holders due to potential discrepancies between FMR and actual rents. For instance, the Zillow median price for a 2BR property is $294,116, which translates into a monthly mortgage payment that could be significantly higher than the FMR. The price-to-FMR ratio of 13.2x suggests that property values are high relative to the FMR, indicating that landlords might struggle to find profitability if they adhere strictly to FMR guidelines. This could lead to a situation where landlords are unwilling to accept Section 8 vouchers, particularly for larger units like 3BR and 4BR properties, where the gap between FMR and market rent is likely even wider. #### Affordability & Renter Profile The population of Coatesville, PA, is 55,941, with 26.2% of residents being renters. The occupancy rate stands at 94.7%, suggesting a relatively tight rental market. Given that the median household income is $90,601, the affordability of housing becomes a critical issue. The FMR for a 2BR unit is $1860, which is 24.6% of the median income. This implies that for a household earning the median income, a 2BR unit would consume a significant portion of their budget, making it challenging for lower-income households to afford housing without assistance. The tight market conditions and the relatively high cost of living suggest that there is a strong demand for affordable housing. However, the high price-to-FMR ratio indicates that the market is not aligned with the FMR, potentially leading to a mismatch between what voucher holders can afford and what is available. This scenario could result in a competitive rental market where landlords have the upper hand, possibly exacerbating the affordability crisis for low-income renters. #### Investor Angle From an investor’s perspective, the ZIP code 19320 presents a mixed picture when considering the FMR. While the FMR provides a benchmark for rental rates, the actual market dynamics must also be taken into account. The Zillow median price for a 2BR property is $294,116, which, assuming a 20% down payment and a 30-year fixed-rate mortgage at 4%, would translate to a monthly mortgage payment of approximately $1250. Adding property taxes, insurance, and maintenance costs, the total monthly expenses could easily exceed the FMR of $1860. This suggests that while the FMR might cover the mortgage payments, it may not provide sufficient cash flow to cover all operating expenses, especially for larger units. Therefore, investors focusing on Section 8 vouchers should consider the operational costs carefully. The investment grade in this ZIP code would likely be moderate to low due to the high price-to-FMR ratio and the potential difficulty in finding profitable properties that meet the FMR requirements. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR properties. These units have FMRs of $1440 and $1560, respectively, which are closer to the actual rental market rates. This strategy could help ensure better cash flow and a higher likelihood of acceptance by voucher holders. 2. **Consider Rental Assistance Programs**: Investors should explore additional rental assistance programs beyond Section 8 to supplement the income generated by FMR-restricted rents. This could include state-level subsidies or other local assistance programs that can help bridge the gap between FMR and market rents. 3. **Evaluate Operational Costs**: Before investing in properties in ZIP code 19320, it is crucial to conduct a thorough analysis of operational costs, including property taxes, insurance, and maintenance. This will help determine whether the FMR can realistically cover these expenses and still generate a profit. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **Skip** this ZIP code unless they can find properties that offer a balance between affordability and profitability. The market conditions suggest that it would be challenging to achieve positive cash flow while adhering strictly to FMR guidelines, particularly for larger units. Investors should look for areas with a lower price-to-FMR ratio or consider alternative investment strategies that incorporate additional rental assistance programs to enhance profitability.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.