Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,470 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 19717 might have several concerns regarding the Fair Market Rent (FMR) of $1740, the rental vacancy rate, and the use of housing vouchers. Let's address these concerns using available data.
Will FMR $1740 cover the mortgage on a home? The data does not provide an exact median home value for ZIP 19717, but nearby ZIP codes offer some insight. In ZIP 19711, the median home value is $376,300, while in ZIP 19713, it is $267,500. Given these figures, an investor in ZIP 19717 would need to calculate the potential mortgage based on the specific property they are interested in. Assuming a typical mortgage interest rate of around 4%, a $300,000 home would have a monthly mortgage payment of approximately $1,400, excluding property taxes and insurance. Therefore, the FMR of $1740 could potentially cover the mortgage, leaving a small margin for other expenses such as maintenance and property taxes.
Is there enough renter demand at the given rental vacancy rate? According to recent data, the average vacancy rate in ZIP 19717 is 35.68%. This rate is quite high and suggests that there may be a surplus of rental properties relative to the number of renters. High vacancy rates can indicate lower demand, which might make it challenging to fill properties and maintain consistent rental income. However, it's important to note that this figure represents the overall vacancy rate, which includes both residential and non-residential properties. The actual rental vacancy rate might be different and would require further investigation into specific rental trends in the area.
Will vouchers keep pace with market rents? While the data does not specify the exact trends in housing voucher usage for ZIP 19717, it's crucial to consider the broader context of housing assistance programs. The U.S. Department of Housing and Urban Development (HUD) periodically adjusts the maximum allowable rent for housing choice vouchers to reflect changes in the local market. If the FMR of $1740 is representative of the local market, then landlords who accept vouchers should expect HUD to adjust the voucher amounts accordingly. However, it's important to monitor local trends in voucher usage and any changes in HUD policies that might affect the amount of assistance provided to tenants.
In conclusion, while the FMR of $1740 might cover the mortgage on a home in ZIP 19717, the high vacancy rate raises questions about the strength of the rental market. Investors should conduct thorough research on specific properties and their potential rental income before making investment decisions. Additionally, monitoring trends in housing voucher usage will be essential for landlords who rely on this form of rent assistance.
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.