Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,730 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2010 for ZIP 19456 in fiscal year 2024 will sufficiently cover the mortgage on a $465,670 home. This concern stems from the fact that the FMR represents the average rent level for a modest dwelling in the area. To address this, it's important to consider the mortgage payment based on typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment for a $465,670 home would be approximately $2,400. Thus, the FMR alone does not cover the mortgage, but it's worth noting that the FMR is often supplemented by other income sources such as private tenants paying above the FMR or additional revenue streams.
The rental vacancy rate of 9.7% in ZIP 19456 could lead to another objection regarding the demand for rental properties. A higher vacancy rate suggests that there may not be enough renters willing to pay the FMR. However, a 9.7% vacancy rate is not necessarily alarming. According to national standards, a vacancy rate between 5-10% is considered healthy and indicates a balanced market. Therefore, while there is some concern over the vacancy rate, it is still within a reasonable range for maintaining a steady tenant base.
The lack of specific data on voucher utilization and average payment standards for ZIP 19456 raises questions about whether the Housing Choice Voucher Program will keep pace with market rents. While the data provided does not specify the exact payment standard for ZIP 19456, it is clear that the voucher system aims to ensure affordable housing by setting payment standards based on the area's FMR. Given that the FMR for ZIP 19456 is $2010, the voucher payment standard would likely be close to this figure, although it may vary slightly depending on the specifics of the local program. Without precise figures, it is challenging to definitively state whether vouchers will fully cover market rents, but they are designed to be a significant portion of the rent.
In conclusion, while the FMR of $2010 does not fully cover the mortgage on a $465,670 home, it can still contribute significantly to the overall financial health of the investment. The rental vacancy rate of 9.7% is within a healthy range, suggesting that there is sufficient demand for rental properties. Lastly, the voucher payment standard, though not explicitly stated for ZIP 19456, is intended to align closely with the FMR to provide affordable housing options. Therefore, investors should consider these factors alongside other potential income sources when evaluating the viability of investing in ZIP 19456.
Data Sources: FMR data from HUD (2027). 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.