Section 8 Fair Market Rent (FMR) for ZIP 19805 - 2027

Investment Score for ZIP 19805

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	$1,220
1 Bedroom	$1,320
2 Bedrooms	$1,580
3 Bedrooms	$1,880
4 Bedrooms	$2,080
5 Bedrooms	$2,413
6 Bedrooms	$2,703
7 Bedrooms	$2,919
8 Bedrooms	$3,065

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,580	$182,072	0.87%	C
3BR	$1,880	$223,874	0.84%	C
4BR	$2,080	$257,975	0.81%	C
5BR	$2,413	$287,270	0.84%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 19805 (Wilmington, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 19805, as set by HUD for 2026, is $1550 for a two-bedroom unit. This amount represents 30.9% of the median household income in the area, which stands at $60,221. However, the actual rental prices in Wilmington can be significantly higher, as indicated by the Zillow median price for a two-bedroom property, which is $178,087. The price-to-FMR ratio of 9.6x suggests that the average rent for a two-bedroom unit is likely much higher than the FMR, potentially making it challenging for Section 8 voucher holders to find suitable housing. Given the high price-to-FMR ratio, landlords who accept Section 8 vouchers might face constraints in terms of the number of units they can offer at the FMR rate. For example, if the average rent for a two-bedroom unit is around $15,000 per year (assuming the Zillow median price reflects annual rental rates), then the FMR of $1550 would only cover approximately 10.3% of the total rental cost. This discrepancy could lead to fewer units being available for voucher holders, as landlords may prefer higher-paying tenants to ensure profitability. #### Affordability & Renter Profile ZIP code 19805 has a population of 41,402, with 40.6% of residents being renters. This indicates a significant demand for rental properties, particularly among low-income households. The occupancy rate of 92.5% suggests that the market is relatively tight, with few vacant units available. With the median household income at $60,221, the affordability of housing is a critical issue. The FMR for a three-bedroom unit is $1860, which is 30.9% of the median income. This means that a household earning the median income would spend nearly one-third of their earnings on rent, leaving limited funds for other necessities. Given the high price-to-FMR ratio, it is likely that many renters in this ZIP code are struggling to afford housing, especially those relying solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 19805 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1550, but the actual rental prices are much higher, with the Zillow median suggesting an average annual rental cost of $15,000. This implies that the average monthly rent could be closer to $1250, which is still above the FMR. To determine whether this ZIP code is cash-flow positive at the FMR, we need to consider the typical rental rates and the costs associated with maintaining and managing rental properties. If the average rent is indeed around $1250 per month, then an investor would need to evaluate whether this rate provides sufficient cash flow to cover expenses such as property taxes, insurance, maintenance, and management fees. Given the high price-to-FMR ratio, it is likely that investors would need to charge above the FMR to achieve positive cash flow, which could limit the pool of potential tenants to those who do not rely solely on Section 8 vouchers. The investment grade for this ZIP code would depend on various factors, including the stability of rental demand, the local economy, and the overall housing market conditions. With a significant portion of the population renting and a high occupancy rate, there is a strong demand for rental properties. However, the high price-to-FMR ratio indicates that the market is not aligned with the needs of low-income households, which could affect the long-term viability of investments focused on Section 8 tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as one-bedroom or studio apartments, where the FMR is lower ($1300 and $1200 respectively). These units are more likely to attract Section 8 voucher holders and provide a better balance between rental income and operational costs. 2. **Consider Property Location**: Within ZIP code 19805, certain neighborhoods may have a higher concentration of low-income households and Section 8 voucher holders. Investors should conduct a detailed analysis of neighborhood demographics to identify areas where the demand for affordable housing is highest. 3. **Engage with Local Programs**: Investors should explore partnerships with local government programs and non-profits that support affordable housing initiatives. These partnerships can provide additional resources and incentives to make Section 8-focused investments more financially viable. #### Bottom Line For investors focusing on Section 8 vouchers, ZIP code 19805 presents a mixed picture. While there is a significant demand for rental properties and a high concentration of renters, the high price-to-FMR ratio makes it challenging to achieve positive cash flow at the FMR rate. Therefore, the recommendation for Section 8-focused investors is to **Hold** or **Skip** this ZIP code unless they can find ways to reduce operational costs or secure units in areas with a higher concentration of low-income households. Investors should carefully evaluate the financial feasibility of their investments and consider diversifying into smaller units or partnering with local programs to improve their chances of success.

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.