Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,950 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,520 |
| 3 Bedrooms | $3,000 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,520 | $336,797 | 0.75% | D |
| 3BR | $3,000 | $535,319 | 0.56% | F |
| 4BR | $3,310 | $811,685 | 0.41% | F |
| 5BR | $3,840 | $959,527 | 0.4% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2460 for ZIP 19444 (Lafayette Hill, PA) can cover the mortgage on a home valued at $630,287. To address this concern, let's consider an average mortgage scenario. Assuming a 20% down payment, the principal amount for a mortgage would be approximately $504,229.60. With prevailing interest rates, a monthly mortgage payment could range from $2,200 to $2,700, depending on the term length. This means the FMR of $2460 is likely sufficient to cover the mortgage payment, but it may not leave much room for additional expenses such as property taxes and maintenance.
The second objection is whether there is enough renter demand at 23.1%. According to recent data, there are 2,486 rental homes listed in ZIP 19444 and surrounding areas. This indicates a healthy supply of rental properties, suggesting that demand is strong enough to support these listings. However, the 23.1% figure refers to the percentage of the population that are renters, which is relatively low compared to other areas. Despite this, the number of rental listings suggests that there is a consistent demand for rental properties in Lafayette Hill.
The final concern is whether housing vouchers will keep pace with the $2,030 market rents. Unfortunately, the data does not provide a direct answer to this question. It is known that voucher amounts can vary widely based on location and individual circumstances. In ZIP 19444, the availability and adequacy of vouchers relative to market rents would depend on the specifics of the voucher program and the cost of living adjustments made annually. Without specific data on voucher amounts in this area, it is difficult to definitively state if they will cover the market rents. However, it is important to note that voucher holders often have flexibility in finding properties that fit their budget, even if the full rent is not covered.
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.