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 | $1,280 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,970 | $381,826 | 0.52% | F |
| 4BR | $2,170 | $529,889 | 0.41% | F |
U.S. Census Bureau data (2024)
To integrate ZIP 21904 into a Section 8 portfolio strategy, consider it primarily as a cash-flow anchor. This classification is based on the significant spread between the Fair Market Rent (FMR) set by the Department of Housing and Urban Development ($1540 for FY 2024) and the average market rent ($1,422), which indicates that properties in this area can potentially be leased at higher rates due to Section 8 subsidies. The median home value of $398,506 further supports this strategy, as it suggests a relatively stable housing market with properties that are likely to maintain their value over time.
The cash-flow anchor role is critical for landlords and small-portfolio investors because it provides a reliable source of income through guaranteed rental payments from the government, even if market rents fluctuate. In ZIP 21904, the $118 difference between the FMR and the market rent means that landlords can secure a higher income per unit than what they might receive from market-rate tenants. This subsidy cushion helps mitigate risks associated with tenant delinquency or vacancy periods, ensuring steady cash flow.
While the ZIP does not provide specific data on price-cut shares or days on market (DOM), which would typically indicate an appreciation play, the strong renter share of 11.0% and median income of $88,136 suggest a robust demand for rental properties. High median incomes often correlate with lower risk of default and higher likelihood of timely rent payments, making this area particularly attractive for Section 8 participation. Landlords can leverage these factors to ensure long-term stability and predictability in their investment returns.
ZIP 21904 can also serve as a diversifier within a broader portfolio strategy. Given the 11.0% renter share, there is a substantial portion of the population looking for rental accommodation, including those who benefit from Section 8. By investing in this ZIP, landlords can spread their risk across different types of renters and housing markets, enhancing the overall resilience of their portfolio against economic downturns or changes in local housing policies.
In summary, ZIP 21904 stands out as a cash-flow anchor within a Section 8 portfolio strategy, thanks to the favorable spread between FMR and market rent. Its stable housing market and high median income further reinforce its suitability for generating predictable income streams, while also offering diversification benefits for a balanced investment approach.
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.