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 | $1,450 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $274,615 | 0.68% | D |
| 3BR | $2,240 | $353,641 | 0.63% | D |
| 4BR | $2,470 | $503,100 | 0.49% | F |
| 5BR | $2,865 | $554,333 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 21901 reveals a critical insight into the financial dynamics for landlords and small-portfolio investors. The Fair Market Rent (FMR) for ZIP 21901 as of fiscal year 2024 is set at $1760, which aligns exactly with the Zillow Observed Rental Index (ZORI), also at $1760. This parity means there is no explicit gap in dollars or percentage between the two figures.
In the context of North East, MD, where 26.9% of residents are renters, the median home value stands at $391,562, and the median household income is $113,719, it's essential to understand how the Section 8 program impacts rental properties. When the FMR equals the market rent, voucher tenants become a viable option for landlords looking to stabilize cash flow and ensure consistent occupancy. The program guarantees that a portion of the rent will be paid by the government, reducing the risk of non-payment and providing a predictable revenue stream.
However, when the FMR is lower than the market rent, as it often is in areas with higher living costs, landlords face a different challenge. Accepting Section 8 tenants means setting rents below the open-market rates, which can result in lower overall yields. In such scenarios, landlords must weigh the benefits of guaranteed payments against the potential loss of income that could be earned by renting to market-rate tenants.
Given the specific figures for ZIP 21901, the absence of a gap between FMR and ZORI makes it a yield play for landlords. The government reimbursement rate matches the local market conditions, allowing landlords to maintain their income levels while benefiting from the stability provided by the Section 8 program. This scenario is particularly favorable in North East, MD, where the median income suggests that many residents may rely on rental assistance programs to secure housing.
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.