Section 8 Fair Market Rent (FMR) for ZIP 19464 - 2027

Investment Score for ZIP 19464

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	$1,290
1 Bedroom	$1,400
2 Bedrooms	$1,670
3 Bedrooms	$1,990
4 Bedrooms	$2,190
5 Bedrooms	$2,540
6 Bedrooms	$2,845
7 Bedrooms	$3,073
8 Bedrooms	$3,227

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,400	$173,406	0.81%	C
2BR	$1,670	$231,878	0.72%	D
3BR	$1,990	$307,809	0.65%	D
4BR	$2,190	$430,197	0.51%	F
5BR	$2,540	$393,829	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19464 (Pottstown, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19464 in Pottstown, Pennsylvania, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1610 per month. This figure represents 24.2% of the median household income in the area, which is $79,787. However, it is important to note that the actual rent for a two-bedroom unit can be significantly higher. According to Zillow, the median price for a two-bedroom rental property is $226,266, which translates to a monthly rent of approximately $1885 based on typical mortgage rates and property values. This means that the actual rent is about 11.7 times the FMR, indicating a substantial gap between the FMR and market rents. This gap creates significant constraints for voucher holders. The maximum allowable rent under the Section 8 program is $1610 for a two-bedroom unit, which is well below the market rate. Consequently, tenants with vouchers have limited options when searching for housing, as landlords may prefer to rent to non-voucher tenants who can pay the full market rate. This dynamic can lead to a shortage of available units for voucher holders, potentially resulting in long waitlists and difficulty finding suitable housing. #### Affordability & Renter Profile ZIP code 19464 has a population of 49,101, with 32.9% of residents being renters. The occupancy rate is 93.6%, suggesting that the rental market is relatively tight. Given the median household income of $79,787, the average renter in this area would find it challenging to afford the market rate of $1885 per month for a two-bedroom unit. This makes the affordability of housing a critical issue for many residents, especially those relying on Section 8 vouchers. The high price-to-FMR ratio of 11.7x indicates that the market is quite expensive relative to the FMR. This suggests that the rental market is not oversupplied; rather, it is likely that there is a balance between supply and demand, but with a strong bias towards higher-priced rentals. As a result, the rental market is likely to be competitive, with landlords having the upper hand due to the limited number of affordable units. #### Investor Angle From an investor's perspective, the ZIP code 19464 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1610, while the actual market rent is around $1885. This discrepancy means that investors focusing solely on Section 8 vouchers will face cash-flow pressures unless they can secure units renting at or below the FMR. However, if an investor can find properties renting at the FMR, the potential for positive cash flow exists, although it will be modest given the high price-to-FMR ratio. The investment grade for this ZIP code is moderate. While there is a steady demand for rental properties, the high market rents suggest that competition for tenants willing to pay the FMR could be fierce. Investors should consider the broader rental market dynamics and the potential for diversifying their tenant base beyond just Section 8 voucher holders. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that can be rented out at or near the FMR. In ZIP code 19464, this means targeting units that can be rented for $1610 or less for a two-bedroom unit. This strategy will help ensure positive cash flow and align with the needs of Section 8 voucher holders. 2. **Consider Multi-Family Units**: Given the high price-to-FMR ratio, single-family homes may be too expensive for Section 8 tenants. Multi-family units, such as apartments, may offer better opportunities for securing tenants at the FMR. These units often have lower maintenance costs and can provide economies of scale, making them more attractive for investors. 3. **Diversify Tenant Base**: While the Section 8 market is important, investors should also consider attracting tenants who do not rely on vouchers. This could include students, young professionals, or families who can afford the higher market rents. Diversifying the tenant base can mitigate the risk associated with the limited availability of affordable units and provide a more stable revenue stream. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market in ZIP code 19464, the recommendation for Section 8-focused investors is to **Hold**. While there are opportunities to invest in lower-rent properties, the overall market conditions make it challenging to achieve substantial positive cash flow. Investors should carefully evaluate the specific properties and consider diversifying their tenant base to ensure financial stability.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.