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 | $2,160 |
| 1 Bedroom | $2,340 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,320 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,340 | $233,180 | 1% | B |
| 2BR | $2,790 | $390,765 | 0.71% | D |
| 3BR | $3,320 | $633,882 | 0.52% | F |
| 4BR | $3,670 | $872,220 | 0.42% | F |
| 5BR | $4,257 | $1,054,668 | 0.4% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 19342, Glen Mills, PA, might have several concerns regarding the feasibility of investing in Section 8 properties. Let's address these points directly using available data.
Objection 1: Will FMR $2,610 (zip FY 2024) cover the mortgage on a $684,672 home?
The Fair Market Rent (FMR) for a two-bedroom home in ZIP 19342 for fiscal year 2024 is set at $2,610. This figure represents the maximum amount that a Section 8 tenant can pay towards rent. To determine if this covers a mortgage, we must consider the interest rate and term of the loan. Assuming a fixed-rate mortgage at a national average rate of around 5% for a 30-year term, the monthly payment on a $684,672 home would be approximately $3,670. This means the FMR does not fully cover the mortgage payment. However, it's important to note that the cost of a home varies widely, and a smaller investment property could easily be covered by the FMR.
Objection 2: Is there enough renter demand at 29.1%?
The percentage of renter-occupied housing units in ZIP 19342 stands at 29.1%. This indicates that nearly a third of all homes in the area are rented out. While this percentage might seem low compared to urban areas, it still represents a significant number of potential tenants. The demand for rental properties, especially those eligible for Section 8, depends on the availability of affordable housing options. It's crucial to research the local housing market trends and the specific needs of the community to gauge actual demand. Data alone cannot predict future changes in demand but provides a snapshot of the current situation.
Objection 3: Will vouchers keep pace with $2,345 market rents?
The market rent for a two-bedroom apartment in ZIP 19342 is estimated at $2,345 per month. Given that the FMR is slightly higher at $2,610, landlords can expect that vouchers will cover the majority of market rents. However, it's essential to monitor any changes in the voucher program and the local housing market. If the market rent increases faster than the FMR, landlords may face challenges in covering their costs. The U.S. Department of Housing and Urban Development adjusts FMRs annually based on market conditions, so staying informed about these adjustments is key to managing risks associated with renter demand and affordability.
In conclusion, while the data shows that FMRs in ZIP 19342 do not fully cover the mortgage on a high-value home, they are sufficient for smaller investments. The 29.1% renter occupancy suggests a reasonable demand for rental properties, though future trends should be monitored. Lastly, the current FMR is adequate to cover market rents, but ongoing vigilance is necessary to ensure long-term viability.
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.