Section 8 Fair Market Rent (FMR) for ZIP 19426 - 2027

Investment Score for ZIP 19426

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	$1,800
1 Bedroom	$1,950
2 Bedrooms	$2,330
3 Bedrooms	$2,780
4 Bedrooms	$3,060
5 Bedrooms	$3,550
6 Bedrooms	$3,976
7 Bedrooms	$4,294
8 Bedrooms	$4,509

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	$2,330	$400,917	0.58%	F
3BR	$2,780	$460,322	0.6%	D
4BR	$3,060	$721,526	0.42%	F
5BR	$3,550	$880,898	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19426 (Collegeville, PA) #### Section 8 Voucher Dynamics In Collegeville, PA, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2,290 per month. This figure represents 18.1% of the median household income of $151,748, indicating that it is within a reasonable range for many residents. However, the actual rental market in Collegeville is significantly higher, with Zillow reporting a median price for a two-bedroom home at $394,998. The price-to-FMR ratio of 14.4x suggests that the actual market rents are far above the FMR levels. For Section 8 voucher holders, this presents a significant challenge. The voucher amount is capped at the FMR, which means that finding a suitable rental property can be difficult due to the high cost of housing. In practice, landlords often have to accept lower rents than they would prefer, making it a tough environment for those relying solely on Section 8 vouchers to find affordable housing. #### Affordability & Renter Profile The population of Collegeville is 43,460, with only 12.2% of the households being renters. This indicates a relatively low demand for rental properties compared to owner-occupied homes. The occupancy rate of 96.8% suggests that there is little vacancy in the rental market, making it a tight market for both renters and landlords. Given the median household income of $151,748, most residents are likely to be financially stable and able to afford higher rent costs. The small percentage of renters implies that those who do rent are likely to be in a more precarious financial situation or are young professionals who prefer renting over buying. The high median income also suggests that there is a strong potential for upward mobility among renters, but the current rental market may still be challenging for them due to the high cost of living. #### Investor Angle From an investor perspective, the ZIP code 19426 presents a mixed picture. While the median income is high, the rental market is very expensive, with the actual median rent for a two-bedroom unit being approximately $394,998. Given that the FMR is only $2,290, the cash flow potential for investors who rely on Section 8 vouchers is limited. To determine if the ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. These include mortgage payments, maintenance, insurance, property taxes, and other operational costs. Assuming a conservative estimate of 10% of the median home value for annual expenses, the total annual cost would be around $39,499.80, or about $3,291.65 per month. This exceeds the FMR by a substantial margin, indicating that relying solely on Section 8 vouchers would not be financially viable for most investors. The investment grade for this ZIP code is likely to be low for Section 8-focused investors due to the high cost of housing and the limited number of renters. However, for investors willing to cater to the broader rental market, the high median income could present opportunities, although the competition for tenants would be fierce. #### Specific Actionable Insights 1. **Target Non-Section 8 Tenants**: Given the high median income and the limited number of renters, investors should focus on attracting non-Section 8 tenants who can pay closer to the actual market rates. This will ensure better cash flow and profitability. 2. **Consider Property Value and Expenses**: Before investing in this ZIP code, carefully evaluate the property value and associated expenses. If the monthly expenses exceed the FMR, the property is unlikely to be profitable for Section 8 tenants alone. 3. **Utilize Local Knowledge**: Engage with local real estate agents and property managers to understand the nuances of the rental market. They can provide insights into the types of properties that are most sought after and the best ways to attract tenants. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code. The high cost of housing and the limited number of renters make it challenging to achieve positive cash flow. Instead, investors should consider areas with a higher percentage of renters and lower median home values where Section 8 vouchers can cover a larger portion of the rent. For investors interested in the broader rental market, the ZIP code could be considered, but they must be prepared to compete with high-end rentals and offer amenities that appeal to the local demographic.

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.