Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,360 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 19733, Saint Georges, DE, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 19733 in fiscal year 2024 is set at $1820. However, the market rent remains unspecified, indicating it could be higher.
To contextualize this, consider that 30.8% of residents are renters, the median home value stands at $311,863, and the median household income is $82,604. With these factors in mind, the FMR of $1820 appears lower than the likely market rent, suggesting that landlords who accept Section 8 vouchers may face a financial shortfall when compared to open-market rates.
If the market rent were, for instance, $2000, the gap would be $180, representing a 9% discount for voucher holders. This means landlords accepting Section 8 vouchers could see their rental income fall short by this amount, impacting their cash flow and investment returns.
Accepting Section 8 vouchers can still be a viable strategy for landlords, particularly those focused on yield plays. The guaranteed payment and federal backing can provide stability and reduce vacancy risks, offsetting some of the financial disadvantages.
However, the discrepancy between the FMR and the potential market rent highlights the importance of thorough due diligence. Landlords should carefully assess their property values and operating costs before deciding to participate in the Section 8 program.
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.