Section 8 Fair Market Rent (FMR) for ZIP 19401 - 2027

Investment Score for ZIP 19401

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	$1,420
1 Bedroom	$1,540
2 Bedrooms	$1,840
3 Bedrooms	$2,190
4 Bedrooms	$2,420
5 Bedrooms	$2,807
6 Bedrooms	$3,144
7 Bedrooms	$3,396
8 Bedrooms	$3,566

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
2BR	$1,840	$230,343	0.8%	D
3BR	$2,190	$281,491	0.78%	D
4BR	$2,420	$272,092	0.89%	C
5BR	$2,807	$243,973	1.15%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19401 (Norristown, PA) #### Section 8 Voucher Dynamics In Norristown, Pennsylvania, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1890 per month for the year 2026. This figure represents 32.4% of the median household income in the area, which stands at $69,908. However, the actual rental market is significantly higher, with the Zillow median price for a two-bedroom property being $226,387. This translates to a price-to-FMR ratio of 10.0x, indicating that the market rent is ten times the FMR. For voucher holders, this means that finding affordable housing can be challenging since the FMR is much lower than the typical market rent. The constraints faced by voucher holders include limited options within their budget, especially when considering that the FMR is only a fraction of what landlords might charge. #### Affordability & Renter Profile The population of Norristown is 43,359, with 54.8% of residents being renters. This high percentage suggests a strong demand for rental properties, making it a tight market. The occupancy rate of 91.4% further supports this conclusion, indicating that most available units are occupied. Given the median household income and the high cost of living, affordability is a significant concern. The majority of renters likely struggle to find housing that fits within their budget, particularly those relying on Section 8 vouchers. With the FMR for a two-bedroom unit at $1890, many renters would need to spend a substantial portion of their income on rent, leaving little room for other expenses. #### Investor Angle From an investor’s perspective, the ZIP code 19401 offers a mixed picture. While the rental market is robust, with a high demand for units and a relatively high occupancy rate, the cash flow potential at FMR levels is questionable. The FMR for a two-bedroom unit is $1890, but the market rent is much higher, at approximately $22,638 annually based on the Zillow median price. Given the high price-to-FMR ratio, it is unlikely that investors will find cash-flow positive opportunities if they are strictly adhering to FMR guidelines. The investment grade for this ZIP code would be considered low due to the difficulty in finding tenants willing to pay the FMR and the high costs associated with maintaining and managing properties in a tight market. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should consider acquiring properties where the rent is below the FMR to attract Section 8 voucher holders. For instance, a one-bedroom unit priced at $1590 could be more attractive to voucher holders compared to the higher market rates. 2. **Consider Multi-Family Properties**: Given the high renter percentage and the tight market conditions, multi-family properties might offer better returns. These properties can accommodate multiple families, increasing the likelihood of finding tenants who qualify for Section 8 vouchers. 3. **Engage with Local Housing Authorities**: To ensure a steady stream of qualified tenants, investors should establish relationships with local housing authorities. This can help in navigating the complexities of the Section 8 program and securing long-term leases. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 19401 is to **Skip**. The high price-to-FMR ratio indicates that the market is not aligned with the FMR guidelines, making it difficult to find cash-flow positive opportunities. Additionally, the tight market conditions suggest that there is limited availability of units that fall within the FMR range, reducing the pool of potential investments. Investors looking to focus on Section 8 vouchers should consider other ZIP codes with more favorable price-to-FMR ratios and a larger supply of affordable units.

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.