Section 8 Fair Market Rent (FMR) for ZIP 19395 - 2027

FY 2027 Fair Market Rent Rates

The analysis of the Section 8 program in ZIP code 19395 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rents. The FMR for ZIP code 19395 in fiscal year 2024 is set at $2000, while the median market rent is higher at $3972. This represents a gap of $1972 or approximately 49.9% below the market rate.

This discrepancy makes the ZIP code 19395 a challenging environment for landlords and small-portfolio investors. Voucher tenants, who rely on the FMR, will pay significantly less than what the open market demands. For instance, a landlord renting a property at the FMR would receive $2000, whereas the same property could fetch $3972 on the open market. This cost differential can be a substantial financial burden for landlords, especially in a high-cost area like Westtown, PA.

In Westtown, PA, the median home value is $897,709, which is considerably higher than the state average. Additionally, the median household income is $124,549, indicating a relatively affluent community. However, the high costs associated with maintaining and managing properties in this area, coupled with the lower FMR, can result in reduced profit margins for landlords participating in the Section 8 program.

Given these conditions, it is essential for landlords to carefully consider the financial implications of accepting Section 8 vouchers in ZIP code 19395. While the program provides stable tenants, the difference in rent payments can impact overall investment yields.

Data Sources: FMR data from HUD (2027).

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.