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 | $1,740 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,250 | $412,067 | 0.55% | F |
| 3BR | $2,680 | $431,087 | 0.62% | D |
| 4BR | $2,960 | $602,714 | 0.49% | F |
| 5BR | $3,434 | $746,869 | 0.46% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 19803, which encompasses parts of Wilmington, Delaware, in New Castle County, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $2100 per month for fiscal year 2024. This figure is specific to this ZIP code, meaning it reflects the local rental market conditions accurately.
However, the local market rent for a similar unit is reported at $1722 based on Census ACS data. This difference is crucial for understanding the financial implications for landlords. When a tenant uses a Section 8 voucher, they pay a portion of their income towards rent, typically 30%, while the government covers the rest up to the SAFMR limit.
To walk through an example, assume a tenant's monthly income is $2000. They would pay 30% of this, which amounts to $600. The government would then cover the remaining amount up to the SAFMR of $2100. Therefore, the total reimbursement to the landlord would be $600 (tenant contribution) + $1500 (government contribution) = $2100.
It’s important to note that the government also provides utility allowances, which can vary. In this case, let’s say the utility allowance is $200 per month. This allowance does not increase the overall rent but can help offset some of the tenant’s living expenses.
In ZIP 19803, the typical reimbursement gap or surplus for a two-bedroom unit is a surplus of $378 per month. This is calculated by subtracting the local market rent ($1722) from the SAFMR ($2100), indicating that landlords could potentially receive more than the average market rent when participating in the Section 8 program.
This surplus can provide a buffer against potential maintenance costs or other financial pressures. However, landlords must ensure that their units meet the Housing Quality Standards (HQS) required by the Section 8 program to maintain eligibility for these higher rates.
Overall, participating in the Section 8 program in ZIP 19803 can be financially beneficial for landlords, offering a guaranteed rent payment at a rate above the local market average.
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.