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 | $1,300 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,410 | $153,836 | 0.92% | C |
| 2BR | $1,680 | $237,284 | 0.71% | D |
| 3BR | $2,000 | $307,557 | 0.65% | D |
| 4BR | $2,210 | $375,398 | 0.59% | F |
| 5BR | $2,564 | $417,885 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 19713 in Newark, Delaware, provides a clear picture of potential returns based on the Fair Market Rent (FMR) and market rent figures. For a two-bedroom unit, the annualized FMR is $1650 per month, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1778 per month.
Using the median home value of $314,931, we can calculate the implied gross yield for both scenarios. With the FMR, the annual rental income would be $19,800, resulting in an implied gross yield of approximately 6.3%. In contrast, using the market rent, the annual rental income increases to $21,336, leading to an implied gross yield of about 6.8%.
The higher gross yield based on market rent reflects a more optimistic scenario where landlords can charge closer to the average rent levels observed in the area. However, considering the renter density of 37.0%, it is important to recognize that a significant portion of the population might prefer homeownership over renting, potentially affecting demand for rental properties.
The N/A-day DOM (days on market) suggests incomplete data regarding how quickly rental units are occupied, which could indicate steady occupancy rates or highlight challenges in securing tenants promptly. Given these factors, the FMR-based gross yield of 6.3% appears more realistic, as it aligns with the government's assessment of what is fair and reasonable for rental subsidies in the area.
Investors should focus on the 6.3% gross yield when evaluating the potential for Section 8 participation in ZIP 19713. This figure provides a solid basis for understanding the financial implications without overestimating the rental income potential.
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.