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 | $1,940 |
| 1 Bedroom | $2,100 |
| 2 Bedrooms | $2,510 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,300 |
| 5 Bedrooms | $3,828 |
| 6 Bedrooms | $4,287 |
| 7 Bedrooms | $4,630 |
| 8 Bedrooms | $4,862 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,100 | $253,384 | 0.83% | C |
| 2BR | $2,510 | $384,669 | 0.65% | D |
| 3BR | $2,990 | $608,521 | 0.49% | F |
| 4BR | $3,300 | $914,135 | 0.36% | F |
| 5BR | $3,828 | $1,563,022 | 0.24% | F |
U.S. Census Bureau data (2024)
The Section 8 real estate analysis for ZIP code 19355, located in Malvern, Pennsylvania, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. For fiscal year 2024, the FMR is set at $2430, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2293. This means that the FMR is $137 higher than the market rent, representing an increase of approximately 5.97%. This positive gap makes voucher tenants a favorable option for landlords and small-portfolio investors looking to maximize their yields.
In the context of Malvern, where 26.5% of residents are renters and the median home value stands at $782,069, the opportunity to leverage the Section 8 program becomes even more compelling. With a median household income of $169,417, it's clear that many residents may find it challenging to afford market-rate rents without assistance. The Section 8 program helps bridge this affordability gap, ensuring that rental properties remain occupied by tenants who can reliably pay their rent through government-subsidized vouchers.
The higher FMR compared to the ZORI suggests that landlords can potentially charge more than what they would typically receive in the open market, thereby increasing their cash flow. This scenario is particularly beneficial given the relatively high median home values and incomes in Malvern, indicating a strong local economy that supports higher rent levels. However, it also implies that landlords must be prepared to manage the administrative requirements of the Section 8 program, which can include regular inspections and adherence to certain maintenance standards.
Despite these requirements, the financial advantage of receiving $137 more per month, or nearly 6% above market rates, makes the Section 8 program a lucrative option for property owners in ZIP 19355. This analysis underscores the potential benefits of participating in the Section 8 program in a market where the FMR exceeds the prevailing market rent, providing a clear path to higher yields for landlords and small-portfolio investors.
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.