Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 19367 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 19367 in fiscal year 2024 is set at $1610, whereas the median home value remains unspecified, indicating limited availability of open-market rental data. Given that 100.0% of residents are renters, the reliance on rental properties is evident.
The disparity between the FMR and the open-market rates poses a challenge for landlords and small-portfolio investors. With an FMR of $1610, which is likely below the market rate, accepting Section 8 tenants could mean lower yields compared to renting to open-market tenants. However, the stability of rental income and guaranteed timely payments from the government can offset the lower rates, making it a viable strategy for certain investors.
To quantify the impact, let's assume the median market rent is around $256,100, based on nearby ZIP Code data. This means the FMR is approximately 62.9% of the estimated market rent, a difference of $951 per month. This gap translates into a significant reduction in potential rental income, but the security of government-backed payments can still make this a yield play for cautious investors.
Given the high percentage of renters and the lack of median income data, landlords must carefully weigh the benefits and drawbacks of participating in the Section 8 program. While the FMR provides a stable baseline for rental income, the cost of housing voucher tenants below open-market rates must be considered. Additionally, the ongoing trend of increasing home values in the region suggests that market rents will likely rise, further widening the gap between FMR and actual rental prices.
Investors should consider these factors when deciding whether to accept Section 8 tenants in their properties within ZIP 19367. The decision should balance the need for steady income against the potential for higher yields from open-market rentals.
Data Sources: FMR data from HUD (2027). 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.