Location: Philadelphia-Camden-Wilmington, PA | Metro: Lancaster, PA 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 | $1,180 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $347,288 | 0.45% | F |
| 3BR | $1,890 | $434,013 | 0.44% | F |
| 4BR | $2,030 | $531,095 | 0.38% | F |
U.S. Census Bureau data (2024)
The rental market in ZIP code 19362, Nottingham, PA, presents an interesting dynamic for both tenants and landlords. The median household income stands at $89,302, which places significant constraints on what a typical household can afford for housing. At a market rate of $1,144 per month (according to Census ACS), a household would spend approximately 15% of their annual income on rent alone. This is already a considerable portion of the budget.
When comparing the market rate to the Fair Market Rent (FMR) set at $1,310 for FY 2024, it becomes evident that the FMR is higher than the current market rate. This means that while the FMR represents the maximum amount that a voucher holder could pay, it exceeds what the average market demands. For a household relying solely on income, the FMR is unaffordable, as it would consume nearly 17% of their annual earnings.
In Nottingham, PA, only 14.2% of the population are renters, with a total population of 6,092. This low percentage of renters suggests a competitive environment for landlords, as there is a limited pool of potential tenants. Given the affordability gap between the median income and both the market rate and FMR, landlords must consider how to attract and retain tenants effectively.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while voucher payments may offer higher rates than the current market, they also come with additional administrative burdens and requirements. Landlords should weigh the benefits of receiving a higher guaranteed rent against the potential challenges of working with the voucher system. For those who can accommodate the requirements, the higher FMR rate could provide a stable source of income, especially in a market where many households cannot afford the full cost of rent without assistance.
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.