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 | $1,650 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,780 | $182,630 | 0.97% | C |
| 2BR | $2,130 | $411,720 | 0.52% | F |
| 3BR | $2,540 | $485,223 | 0.52% | F |
| 4BR | $2,800 | $712,630 | 0.39% | F |
| 5BR | $3,248 | $870,414 | 0.37% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 19335, Downingtown, PA, include significant tenant turnover due to the disparity between the market rent of $2,089 and the Fair Market Rent (FMR) of $1,860 for FY 2024. This discrepancy can lead to frequent changes in occupancy, which may increase operational costs and administrative burdens. Additionally, the short duration of 6 days on the market (DOM) suggests that while vacancies might be rare, the quick turnover can still pose challenges in maintaining consistent cash flow. The typical home value of $574,645 combined with a median income of $143,249 creates a scenario where deferred maintenance could become a critical issue. Landlords must ensure that properties meet the necessary standards to avoid penalties and maintain eligibility for the program.
However, these risks are mitigated by the high renter share of 20.8%. In areas with a dense rental population, there tends to be a higher demand for housing vouchers, which can stabilize occupancy rates and reduce the financial impact of turnover. The strong presence of renters indicates a robust market for Section 8 properties, making it easier to find tenants who qualify for the program and are committed to paying their rent on time through the voucher system.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 19335, Downingtown, PA, is moderate.
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.