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 | $1,380 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,500 | $164,727 | 0.91% | C |
| 2BR | $1,790 | $283,030 | 0.63% | D |
| 3BR | $2,130 | $430,160 | 0.5% | F |
| 4BR | $2,350 | $606,059 | 0.39% | F |
| 5BR | $2,726 | $750,084 | 0.36% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 19806 (Wilmington, DE) for Section 8 investment, follow this decision tree:
Step 1: Does the Fair Market Rent (FMR) of $1,670 cover the debt service on a property valued at $348,087?
Yes. If your debt service is less than or equal to $1,670 per month, then the FMR supports your investment. This means that rental income from a Section 8 tenant would meet or exceed your monthly mortgage payment.
No. If your debt service exceeds $1,670 per month, the FMR does not cover it, making the investment unviable under Section 8 guidelines without additional sources of income.
Step 2: Is the market rent of $1,790 (ZORI) above, at, or below the FMR?
Above. The ZORI being higher than the FMR indicates that market conditions favor higher rents. This could mean that while Section 8 tenants are available, you might miss out on higher-paying market-rate tenants.
At or Below. If market rent is at or below the FMR, Section 8 rates are competitive with market rates, making it a viable option for landlords who prefer stable government-backed tenants.
Step 3: Do the 49.1% of renters and the unknown days on market (DOM) indicate sufficient demand?
Yes. With nearly half of the residents being renters, there is a significant demand for rental properties. Even though the DOM is not available, the high percentage of renters suggests strong interest in housing, which can support both Section 8 and market-rate investments.
No. If the DOM is unusually high, it could indicate that properties are taking longer to rent, suggesting weaker demand. However, with 49.1% of the population renting, demand is still substantial but may require more time and effort to secure tenants.
It Depends. Without specific DOM data, it's challenging to gauge the exact speed of leasing. However, the high percentage of renters indicates a robust market. You should consider other factors such as vacancy rates and economic trends in Wilmington to make an informed decision.
In conclusion, if your debt service is covered by the FMR and the ZORI is at or below the FMR, and the high percentage of renters suggests sufficient demand, then investing in ZIP 19806 for Section 8 is a sound strategy. However, if any of these conditions are not met, reconsider your investment or explore ways to mitigate the risks.
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.