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 | $1,400 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,810 | $231,973 | 0.78% | D |
| 3BR | $2,160 | $317,703 | 0.68% | D |
| 4BR | $2,380 | $421,503 | 0.56% | F |
| 5BR | $2,761 | $512,700 | 0.54% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 19809, which encompasses parts of Wilmington, DE, reveals a critical gap between the Federal Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1740, while the Zero Outlier Rent Index (ZORI), a measure of typical market rent, is $1689. This indicates that the FMR exceeds the market rent by $51, or approximately 3.01%. In the context of Wilmington, where 25.9% of residents are renters and the median home value is $316,575, this gap has significant implications.
The higher FMR compared to the ZORI suggests that landlords who accept Section 8 vouchers can potentially achieve better yields on their investments. The median income in Wilmington is $81,288, indicating that many residents rely heavily on rental assistance programs such as Section 8. By accepting voucher tenants, landlords can secure a steady stream of rental income that is guaranteed by the government up to the FMR level. This can be particularly advantageous in an area where the median home value is relatively high, making homeownership less accessible for many residents.
However, the decision to accept Section 8 tenants must also consider the administrative burden and potential delays in receiving payments. Despite these challenges, the fact that the FMR is above the market rent means that landlords can still maintain a competitive position in the local rental market while benefiting from the stability of government-backed payments. This scenario makes ZIP 19809 a favorable location for yield-focused real estate investments, especially given the high proportion of renters and the reliance on rental assistance programs.
Landlords and small-portfolio investors should weigh the benefits of higher guaranteed rents against the operational complexities of working with voucher programs. The analysis underscores that in Wilmington, DE, Section 8 can be a strategic tool for maximizing investment returns while providing affordable housing options to those who need them most.
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.