Section 8 Fair Market Rent (FMR) for ZIP 19382 - 2027

Investment Score for ZIP 19382

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	$1,710
1 Bedroom	$1,850
2 Bedrooms	$2,210
3 Bedrooms	$2,630
4 Bedrooms	$2,900
5 Bedrooms	$3,364
6 Bedrooms	$3,768
7 Bedrooms	$4,069
8 Bedrooms	$4,272

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,850	$273,956	0.68%	D
2BR	$2,210	$327,967	0.67%	D
3BR	$2,630	$576,441	0.46%	F
4BR	$2,900	$822,189	0.35%	F
5BR	$3,364	$1,146,432	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19382 (West Chester, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19382 is set by HUD for 2026, with specific rates for different types of units. For a two-bedroom unit, the FMR is $2,160 per month. However, the actual median rent for a two-bedroom unit on Zillow is significantly higher at $325,574, which translates to a monthly price-to-FMR ratio of approximately 12.6 times. This means that the actual rental costs are much higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing within their budget. The voucher program is designed to cover up to 120% of the FMR, but even at this level, the maximum payment would be $2,592, still far below the actual market rate. Therefore, voucher holders face significant constraints in finding affordable housing, especially for larger units like three or four bedrooms. #### Affordability & Renter Profile ZIP code 19382 has a population of 54,127, with 29.1% of residents being renters. The median household income in this area is quite high at $132,091, suggesting that most residents can afford the higher-than-average rental costs. The occupancy rate of 96.3% indicates that the market is tight, with very few vacant units available. This tightness suggests that there is a strong demand for rental properties, but the high median rent makes it difficult for lower-income individuals to enter the market. Given the high income levels and the relatively low percentage of renters, the typical renter in this area likely has a higher income than the average renter in other ZIP codes. #### Investor Angle From an investor's perspective, the ZIP code 19382 presents a challenging scenario when focusing on Section 8 vouchers. The FMR for a two-bedroom unit is $2,160, while the actual median rent is $325,574, resulting in a monthly rent of around $27,131. This high price-to-FMR ratio means that the cash flow for properties rented through Section 8 vouchers will be negative unless the property is significantly below market value. For instance, a two-bedroom unit renting at the FMR would generate only $2,160 per month, whereas the actual median rent is nearly 12.6 times higher. This implies that the investment grade for Section 8-focused properties in this ZIP code is low due to the negative cash flow potential. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom or studio apartments. These units have a lower FMR ($1,810 for 1BR), making it more feasible to find properties that can be rented out at or near the FMR without incurring significant losses. 2. **Target Lower-Rent Neighborhoods Within West Chester**: While the overall market is expensive, there might be pockets within West Chester where rental prices are closer to the FMR. Investors should conduct thorough research to identify these areas and target properties there. This could involve analyzing neighborhood-specific data or looking at older, less desirable properties that might rent for closer to the FMR. 3. **Consider Mixed-Income Developments**: Since the median household income is high, developing mixed-income properties that cater to both Section 8 voucher holders and higher-income tenants could be a viable strategy. This approach allows for diversification of tenant profiles and potentially better financial performance overall. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 19382 is to **skip** this market. The negative cash flow potential and the difficulty in finding affordable properties make it an unattractive investment opportunity. Instead, investors should look for ZIP codes with a more favorable price-to-FMR ratio and a higher percentage of renters who are likely to rely on government assistance programs.

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.