Section 8 Fair Market Rent (FMR) for ZIP 19380 - 2027

Investment Score for ZIP 19380

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,030
1 Bedroom	$2,190
2 Bedrooms	$2,620
3 Bedrooms	$3,120
4 Bedrooms	$3,440
5 Bedrooms	$3,990
6 Bedrooms	$4,469
7 Bedrooms	$4,827
8 Bedrooms	$5,068

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,190	$336,701	0.65%	D
2BR	$2,620	$447,018	0.59%	F
3BR	$3,120	$548,232	0.57%	F
4BR	$3,440	$778,100	0.44%	F
5BR	$3,990	$1,007,033	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19380 (West Chester, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 19380 indicate that a two-bedroom unit should rent for $2,510 per month according to the U.S. Department of Housing and Urban Development (HUD). However, the actual median rent for a two-bedroom unit is significantly higher, at $441,982 based on Zillow data. This means that the price-to-FMR ratio for a two-bedroom unit is 14.7 times the FMR. For voucher holders, this presents a significant challenge, as the actual rents far exceed the FMR guidelines. The voucher amount would only cover a small fraction of the total rent, leaving a substantial gap for tenants to fill out-of-pocket. Given the median household income of $122,899, the FMR for a two-bedroom unit represents approximately 24.5% of the median income. This suggests that while the FMR is designed to be affordable, it is still a considerable portion of the average resident’s income. Additionally, the occupancy rate of 96.4% indicates a robust demand for rental units, which further complicates the ability of voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 19380 has a population of 49,856, with 28.0% of residents being renters. The high median household income of $122,899 suggests that the area attracts individuals and families who can afford higher rents. However, the significant disparity between the FMR and actual rents makes it difficult for lower-income households to find affordable housing, even with vouchers. The tight market conditions, as evidenced by the high occupancy rate, mean that there is limited supply of rental units available, which drives up prices. This creates a challenging environment for both renters and landlords, where the cost of living is high and the competition for rental properties is intense. The median rent for a two-bedroom unit being $441,982 is well beyond what most voucher holders can afford, indicating that the market is not particularly favorable for low-income renters. #### Investor Angle From an investor perspective, the FMR figures provide a baseline for what HUD considers affordable. However, the actual median rents suggest that the market is much higher. For an investor looking to generate cash flow, renting at the FMR levels would likely result in negative cash flow due to the high purchase price and operating costs associated with properties in this ZIP code. For instance, the Zillow median price for a two-bedroom unit is $441,982, which translates to a monthly mortgage payment of around $2,000 assuming a 30-year fixed-rate mortgage at 5%. Adding property taxes, insurance, maintenance, and other expenses could easily push the total monthly costs above $2,510, making it difficult to achieve positive cash flow when renting at the FMR. The investment grade for this ZIP code is likely to be low for Section 8-focused investors due to the high purchase prices and the difficulty in finding tenants willing to pay the full rent without substantial subsidies. The high price-to-FMR ratio also suggests that the market is not aligned with HUD’s affordability standards, making it less attractive for investors relying solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $2,110, which is still significantly below the median rent but may offer better cash flow opportunities compared to larger units. Investors should aim to acquire properties where the rent can be set closer to the FMR without sacrificing occupancy rates. 2. **Consider Mixed-Income Developments**: Developing mixed-income housing projects can help balance the financial burden of renting at FMR levels. By offering a mix of market-rate and subsidized units, investors can leverage higher rents from market-rate units to offset the lower rents from Section 8 units. This approach can potentially create a more sustainable financial model. 3. **Utilize Local Subsidies**: In addition to federal Section 8 vouchers, local subsidies and programs may be available to help bridge the gap between FMR and actual rents. Investors should research and explore these options to enhance their ability to attract and retain tenants who rely on government assistance. #### Bottom Line For investors focused specifically on Section 8 vouchers, the ZIP code 19380 (West Chester, PA) is not recommended. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow. Instead, investors might consider areas with lower price-to-FMR ratios or explore alternative investment strategies that incorporate mixed-income developments. The bottom line recommendation is to **skip** this ZIP code for Section 8-focused investments.

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.