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 | $1,580 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,440 | $396,094 | 0.62% | D |
U.S. Census Bureau data (2024)
The analysis for ZIP code 19474 reveals a clear picture regarding potential Section 8 investments. With the Fair Market Rent (FMR) for a two-bedroom apartment set at $2040 annually, the implied gross yield can be calculated based on the median home value of $394,510.
To determine the gross yield, we first need to understand that the FMR represents the maximum amount that a Section 8 tenant can pay towards rent. Assuming an investor purchases a median-priced home and rents it out through the Section 8 program, the annual rental income would be $2040. This translates to a gross yield of approximately 0.52%. The calculation is straightforward: divide the annual rental income by the property value and multiply by 100 to get the percentage. In this case, it's $2040 / $394,510 * 100 = 0.52%.
Given the lack of data on market rent and the fact that the renter density is 0%, it's challenging to compare this scenario with typical market conditions. However, the absence of market rent data suggests that traditional rental options might not be competitive in this area, making the Section 8 program a potentially viable alternative for landlords and small-portfolio investors looking to generate stable, if modest, income streams.
The Days on Market (DOM) figure being N/A further complicates the analysis, indicating either a lack of recent sales activity or insufficient data to provide a meaningful comparison. Despite these limitations, the Section 8 scenario offers a predictable income source, albeit with a low gross yield, which could be attractive to investors seeking long-term stability over high returns.
In conclusion, while the market rent data is unavailable, the Section 8 program provides a clear, albeit conservative, gross yield of 0.52% for a two-bedroom unit in ZIP 19474. This yield is based solely on the FMR and does not account for other factors such as maintenance costs or vacancy rates. For investors, the decision to pursue Section 8 properties should be made with an understanding of these figures and the broader investment landscape.
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.