Section 8 Fair Market Rent (FMR) for ZIP 19709 - 2027

Investment Score for ZIP 19709

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	$1,560
1 Bedroom	$1,690
2 Bedrooms	$2,020
3 Bedrooms	$2,410
4 Bedrooms	$2,650
5 Bedrooms	$3,074
6 Bedrooms	$3,443
7 Bedrooms	$3,718
8 Bedrooms	$3,904

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	$2,020	$421,248	0.48%	F
3BR	$2,410	$425,999	0.57%	F
4BR	$2,650	$606,371	0.44%	F
5BR	$3,074	$705,305	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19709 (Middletown, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19709 is set by HUD for the year 2026 as follows: - 0BR: $1550 - 1BR: $1690 - 2BR: $2010 - 3BR: $2410 - 4BR: $2690 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR property is $422,967. The price-to-FMR ratio for a 2BR unit is 17.5 times the FMR, indicating that the actual rental costs are far above the FMR levels. Given these high ratios, voucher holders face significant constraints. A 2BR unit at FMR ($2010) represents only 18.1% of the median household income ($132,956), which suggests that even if a landlord were willing to accept the voucher, the rent would still be relatively low compared to the overall income level. This could make it difficult for voucher holders to find suitable housing, as landlords might prefer higher-paying tenants. #### Affordability & Renter Profile ZIP code 19709 has a population of 53,234, with 13.8% being renters. The occupancy rate stands at 98.9%, indicating a very tight market with limited available units. Given the high median household income and the fact that only a small percentage of the population are renters, it is likely that the majority of residents own their homes. The few renters in the area are likely to be individuals or families who cannot afford to purchase a home but still have relatively high incomes compared to national averages. The high price-to-FMR ratio suggests that the rental market is quite expensive. With the median household income being $132,956, most residents can afford to pay much more than the FMR for a 2BR unit. This tight market and high income levels mean that there is a strong demand for rental properties, but the supply is limited, making it challenging for lower-income households to find affordable housing. #### Investor Angle From an investor's perspective, the ZIP code 19709 presents a mixed picture. While the rental market is tight and there is a strong demand for rental properties, the actual rents are far above the FMR levels. For a 2BR unit, the FMR is $2010, while the Zillow median price is $422,967, implying that the actual rental rates are likely to be around $17.5 times the FMR, or approximately $35,175 per year. Given the high actual rental rates, an investor would need to consider whether the FMR levels provide sufficient cash flow. If a landlord accepts a Section 8 voucher, they will receive $2010 per month for a 2BR unit, which is significantly below the market rate. Therefore, the cash flow for investors focusing on Section 8 vouchers would be negative unless they can find ways to reduce operating costs or secure additional subsidies. The investment grade for this ZIP code would be low for Section 8-focused investors due to the negative cash flow potential. However, for investors willing to accept market-rate rents, the investment grade would be high given the strong demand and limited supply. #### Specific Actionable Insights 1. **Focus on Market-Rate Rentals**: Investors should focus on securing market-rate rentals rather than relying solely on Section 8 vouchers. The actual rental rates are much higher than the FMR, and the tight market means that there is a strong likelihood of finding tenants willing to pay these higher rates. 2. **Consider Mixed-Income Developments**: Given the high median household income and the limited number of renters, developing mixed-income properties could be a viable strategy. These developments would cater to both higher-income tenants paying market rates and lower-income tenants using vouchers. This approach can help balance the cash flow and meet the needs of a broader range of residents. 3. **Explore Additional Subsidies**: Investors should explore additional subsidies and programs that can complement Section 8 vouchers. For example, local government programs or other federal assistance might help bridge the gap between the FMR and the actual market rates. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** ZIP code 19709. The high price-to-FMR ratio and tight market conditions make it challenging to achieve positive cash flow when relying solely on Section 8 vouchers. Instead, investors should look for areas where the FMR is closer to the actual rental rates or where there is a larger percentage of renters relative to the population. Alternatively, investors could consider diversifying their portfolio to include both market-rate and subsidized rentals to balance the financial risks and rewards.

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.