Section 8 Fair Market Rent (FMR) for ZIP 19403 - 2027

Investment Score for ZIP 19403

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	$1,570
1 Bedroom	$1,700
2 Bedrooms	$2,030
3 Bedrooms	$2,420
4 Bedrooms	$2,670
5 Bedrooms	$3,097
6 Bedrooms	$3,469
7 Bedrooms	$3,747
8 Bedrooms	$3,934

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	$1,700	$195,179	0.87%	C
2BR	$2,030	$278,886	0.73%	D
3BR	$2,420	$422,148	0.57%	F
4BR	$2,670	$580,833	0.46%	F
5BR	$3,097	$665,519	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19403 (Norristown, PA) #### Section 8 Voucher Dynamics In Norristown, PA (ZIP code 19403), the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2000 per month. This figure represents 23.1% of the median household income in the area, which stands at $104,071. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $278,353. This translates to a monthly rent of approximately $2,319 if we assume a standard mortgage payment based on the property value, which is still above the FMR. The disparity between FMR and actual rents poses significant constraints for Section 8 voucher holders. They must find landlords willing to accept the voucher amount, which is often lower than what the market demands. In practice, this means that voucher holders might struggle to secure housing that meets their needs, especially in a competitive market like Norristown. #### Affordability & Renter Profile Norristown has a population of 44,017, with 26.4% of residents being renters. The occupancy rate is quite high at 96.2%, indicating a tight rental market where demand outstrips supply. Given the median household income of $104,071, it suggests that the majority of residents are employed and earning a decent salary, making them less reliant on government assistance programs. However, the 26.4% of renters represent a substantial portion of the population who may be seeking affordable housing options. The price-to-FMR ratio for a two-bedroom unit is 11.6x, meaning that the market price is more than eleven times the FMR. This high ratio indicates that the rental market is very expensive relative to the FMR, putting considerable pressure on low-income households and potentially limiting the pool of available rental properties for Section 8 voucher holders. #### Investor Angle From an investor perspective, the ZIP code 19403 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2000, but the actual market rent is closer to $2,319. If an investor can secure a property at the FMR level, they would likely see positive cash flow due to the higher market rents. However, the challenge lies in finding landlords willing to accept the FMR, as many may prefer to rent at market rates to maximize their returns. The investment grade for this ZIP code can be considered moderate to high risk. While there is a strong demand for rental properties, the high price-to-FMR ratio suggests that the market is not aligned with the FMR, which could lead to difficulties in finding tenants who can afford the FMR. Additionally, the tight rental market implies that competition for properties is fierce, which could drive up acquisition costs. #### Specific Actionable Insights 1. **Focus on Properties Below Market Value**: Investors should focus on acquiring properties that are priced below the market median of $278,353. This will allow them to offer rentals at or slightly above the FMR, ensuring positive cash flow while remaining attractive to potential tenants. 2. **Target Multi-Family Units**: Given the high occupancy rate and the fact that 26.4% of residents are renters, multi-family units (such as apartments) are likely to perform better than single-family homes. These units can cater to families needing larger spaces, aligning well with the FMR for three and four-bedroom units ($2400 and $2680 respectively). 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide valuable insights into the availability of vouchers and the preferences of voucher holders. This can help investors tailor their offerings to meet the needs of these tenants, increasing the likelihood of successful tenancies. #### Bottom Line For Section 8-focused investors, the ZIP code 19403 presents a challenging but potentially rewarding market. The high price-to-FMR ratio and tight rental market suggest that finding properties at or near the FMR will be difficult. However, with strategic acquisitions and by targeting multi-family units, investors can achieve positive cash flow and contribute to the affordability of housing in the area. Given the constraints and the competitive nature of the market, the recommendation is to **Hold** on existing investments in this ZIP code and **Skip** new acquisitions unless they can be secured at a significant discount to the market value. This approach balances the risks associated with the high market rents against the benefits of positive cash flow and the potential for stable tenancies with Section 8 voucher holders.

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.