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 | $1,360 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,470 | $196,379 | 0.75% | D |
| 2BR | $1,760 | $273,021 | 0.64% | D |
| 3BR | $2,100 | $350,594 | 0.6% | F |
| 4BR | $2,310 | $458,838 | 0.5% | F |
| 5BR | $2,680 | $561,681 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 19808, located in Wilmington, Delaware, within New Castle County, can be broken down clearly for landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1760. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards the rent of a two-bedroom unit in this area.
In contrast, the local market rent for a similar two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), stands at $1926. This indicates that the market rent exceeds the SAFMR by $166. To understand the actual payment received by landlords, it's essential to consider both the tenant's portion of the rent and the utility allowances.
The tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this program, the tenant's portion would be calculated accordingly. For instance, if a tenant has an adjusted income of $20,000 per year, they would pay approximately $500 per month towards rent, leaving the remaining $1260 to be covered by the voucher.
Utility allowances are additional payments made directly to tenants to help cover their energy costs. These allowances vary but are typically around $200-$300 per month. Therefore, the total reimbursement a landlord might receive from a voucher for a two-bedroom unit in ZIP 19808 would be the SAFMR of $1760 plus the tenant's contribution of about $500, totaling $2260. However, since the market rent is $1926, landlords should expect to receive the SAFMR of $1760 plus the tenant's share, which covers the full rent amount.
This leaves a surplus of $334 per month for landlords when considering the SAFMR and the tenant's contribution. The surplus arises because the combined payment from the voucher and the tenant exceeds the local market rent. Landlords should note that while the SAFMR sets a cap on what the voucher program will pay, the actual reimbursement can vary based on the tenant's income and the utility allowance.
To summarize, in ZIP 19808, landlords can expect a reimbursement of $1760 from the voucher program for a two-bedroom unit, plus an additional $500 from the tenant, resulting in a total of $2260. Given the local market rent of $1926, this creates a surplus of $334 per month. Landlords must ensure that the rent they charge does not exceed the SAFMR to avoid losing the subsidy.
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.