Fair market rent in Philadelphia: 2025 FMR rates and how they affect your voucher

Last updated 2026-07-10

What is fair market rent, and why does it matter in Philadelphia?

Fair Market Rent is the number HUD publishes each year to represent modest, decent housing in a metro area. It covers rent plus tenant-paid utilities. HUD sets FMR at the 40th percentile of gross rents for standard-quality units occupied by recent movers, which means 40% of people who moved in the past 15 months paid at or below that figure. ^[1]

For voucher holders in Philadelphia, FMR is where everything starts. The Philadelphia Housing Authority (PHA) uses it to set its payment standard, the maximum PHA will pay toward your rent each month. Charge more than the standard and you cover the gap yourself, and that gap can only climb so high before HUD rules block the lease outright. Come in under the standard and you can actually save money.

For landlords, FMR sets the expectation. A unit priced near the FMR for its bedroom size sits squarely in the range PHA supports. A unit priced 20% above it is usually a dead end unless PHA has a higher payment standard for that area or you're willing to come down.

People mix up three numbers all the time. FMR is not the payment standard, and neither one is what you'll actually pay. FMR comes from HUD. The payment standard comes from PHA, set somewhere between 90 and 110% of FMR (or up to 120% with HUD sign-off). Your own rent burden depends on your income, the unit's rent, and where that payment standard lands. Learn the chain and the rest of the program stops feeling random. ^[2]

What are Philadelphia's FMR rates for 2025?

HUD publishes FMRs by fiscal year, October 1 through September 30. Here are the FY2025 figures for the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD HUD Metro FMR Area. ^[3]

Bedroom Size	FY2025 Fair Market Rent
Efficiency (0-BR)	$1,125
1-Bedroom	$1,310
2-Bedroom	$1,647
3-Bedroom	$2,058
4-Bedroom	$2,375

These are gross rent figures: rent plus any utilities the tenant pays. If the landlord covers all utilities, the full FMR can go toward rent. If you pay utilities, PHA applies a utility allowance to work out how much of the FMR is left for actual rent.

A few things worth knowing. The Philadelphia HUD metro area is big. It reaches well past the city into surrounding Pennsylvania counties and into parts of New Jersey, Delaware, and Maryland. Rents in Center City or Fishtown run far above these numbers. Rents in parts of Northeast or West Philadelphia sit right at or below them. FMR is a metro-wide average, not a neighborhood price.

HUD also publishes Small Area Fair Market Rents (SAFMRs) for Philadelphia. Those are calculated at the ZIP code level and run higher in high-opportunity neighborhoods, lower in cheaper ones. Some PHAs in the metro are required to use SAFMRs. ^[4] Ask PHA directly which standard applies to your voucher.

The market has moved fast. HUD's FY2022 2-bedroom FMR for Philadelphia was $1,308. Three years later it's $1,647, a jump of about 26%. ^[3] For a different kind of market, HUD fair market rent in Vermont tells another story: the FY2025 2-bedroom FMR for Burlington is $1,609, a hair below Philadelphia's, while Vermont's rural counties run considerably lower.

How does Philadelphia Housing Authority set its payment standard?

PHA doesn't have to copy the FMR number. Under 24 CFR 982.503, a PHA can set its payment standard anywhere from 90 to 110% of the current FMR with no HUD approval needed. ^[2] With approval, it can go up to 120% in high-cost areas.

PHA reviews and adjusts its payment standards based on local market conditions, and the numbers vary by unit size. Pull the current schedule straight from PHA's website or ask your caseworker, because these figures change and they matter more than FMR for anything you actually decide.

Here's the chain in plain terms. HUD sets FMR for the metro. PHA reads local market data and sets its payment standard. Your housing specialist works out how much PHA will pay based on your family size and income. You pay the difference between PHA's share and the landlord's rent, but at lease-up your share cannot top 40% of your adjusted monthly income. ^[2]

If you're hunting for homes for rent with section 8 in Philadelphia, get the payment standard for your bedroom size before you tour a single unit. It saves hours of driving and a lot of let-downs.

How does HUD actually calculate fair market rent?

HUD starts with American Community Survey (ACS) data from the Census Bureau, then updates it with the Census 1-year ACS estimates and local Consumer Price Index rent indexes to catch up to the current market. ^[1]

The 40th-percentile rule is the design choice that drives everything. HUD aims at modest housing on purpose, not the cheapest and not the median. The theory is that a voucher should reach a standard-quality unit in roughly 40% of the market. In a hot market like Philadelphia, that theory holds up in some neighborhoods and falls apart in others.

For Philadelphia, HUD runs one metro-wide calculation instead of separate city and suburban numbers. The result is a blend. High-rent ZIP codes in Montgomery County pull it up. Cheaper ZIP codes in parts of the city or the rural fringe pull it down. Neither group is well served by a single average, which is exactly why HUD built the Small Area FMR system.

Small Area FMRs for Philadelphia come out at the ZIP code level. HUD requires certain high-poverty PHAs to use them so voucher holders can reach opportunity neighborhoods. The regulation is 24 CFR 888.113. ^[4] If you hold a Philadelphia voucher and want to move to a pricier ZIP, ask PHA whether your voucher runs on the metro-wide FMR or the SAFMR for that ZIP.

What does the rent reasonableness rule mean on top of FMR?

A unit can price under the payment standard and still get rejected. PHA won't approve it if the rent is unreasonable next to similar unassisted units in the same market. That's the rent reasonableness requirement under 24 CFR 982.507. ^[5]

Plain version: if every comparable 2-bedroom within a few blocks rents for $1,400 and a landlord wants $1,600 from a voucher tenant, PHA can say no even when $1,600 sits under the payment standard. PHA runs its own comparability check. Landlords sometimes push back and win with real comps, but the rule is there to keep public money from overpaying.

The test cuts both ways. When a neighborhood's rents spike fast, PHA's comparable-unit database can lag the market. A landlord can challenge a low finding with their own listings. Documented comps from Zillow or Apartments.com with dates, addresses, and rent amounts carry weight.

For tenants, the lesson is timing. A unit you love can die at the PHA approval stage if the rent fails this test. Build slack into your search so one rejection doesn't cost you the whole voucher clock.

How does FMR affect what a voucher holder actually pays each month?

Your monthly rent burden has a floor and a ceiling written into the rules. At initial lease-up, your share cannot exceed 40% of your adjusted monthly income. ^[2] After that, if the landlord raises rent and the payment standard doesn't keep up, your share can drift higher. That's why annual recertifications matter.

Here's a concrete example. Say PHA's payment standard for a 2-bedroom is $1,700 and you find an apartment for $1,600. PHA calculates your total tenant payment (TTP) from your income, say $400. PHA pays the difference between the payment standard and your TTP: $1,700 minus $400 is $1,300. The landlord collects $1,300 from PHA and $300 from you (because $1,600 minus $1,300 is $300). Your $300 share sits below your $400 TTP, so you actually come out ahead here.

Now flip it. Same $1,700 payment standard, but the apartment rents for $2,000. PHA still pays $1,300. You pay $700. If your income is low enough, that's more than 40% of your adjusted monthly income, so PHA may block the unit at lease-up. Once you're already in a unit the math loosens, but at move-in the 40% cap is hard.

Want to test the numbers before you tour? A fair market rent calculator will estimate your share at different rent levels.

Where can you find Philadelphia apartments that accept Section 8 vouchers?

Finding a Philadelphia landlord who takes vouchers takes work. The city has source-of-income protection under the Philadelphia Fair Practices Ordinance, which bars landlords from refusing to rent based on a tenant's source of income, vouchers included. ^[6] So a "no Section 8" ad is illegal in Philadelphia. The catch: enforcement is complaint-driven, and plenty of landlords either don't know the rule or ignore it.

Start with the practical sources. PHA keeps a listing of properties that have taken voucher tenants before. HUD's resource locator carries landlord listings too. Beyond the official channels, low income houses for rent aggregators pull together Philadelphia properties that have historically accepted vouchers.

When you call a landlord, say up front that you have a voucher. Ask whether they've worked with PHA. A landlord who has already cleared inspections, signed HAP contracts, and collected payments is far easier than one starting cold. Both can work, but a first-timer adds 4 to 8 weeks to your timeline just for paperwork and inspection scheduling.

Where does the payment standard usually cover asking rent? Parts of Northeast Philadelphia, parts of West Philadelphia, and Kensington-area ZIP codes. Where does it usually fall short? Center City, Rittenhouse, Fishtown, and Northern Liberties. That gap is a big reason SAFMRs exist, to give voucher holders a real shot in higher-cost ZIP codes. ^[4]

You can also browse section 8 houses for rent on Trulia and similar sites. Listings tagged "Section 8 welcome" tend to be more reliable than a citywide search where landlord willingness is a guess.

What do Philadelphia landlords need to know about FMR and HAP contracts?

If you own Philadelphia property and you're weighing a Housing Choice Voucher tenant, FMR is the anchor for what PHA will pay. Set rent at or below the payment standard for the bedroom size, clear the rent reasonableness test, pass the Housing Quality Standards inspection, and you land a signed Housing Assistance Payment (HAP) contract with PHA. ^[7]

HAP payments are reliable. PHA direct-deposits the assistance portion every month. You still collect the tenant's share from the tenant, but the PHA piece arrives on a fixed schedule. Landlords who stick with the program point to that reliability as the main reason.

The friction lives in the inspection and the wait for that first payment. HUD requires a unit to pass a Housing Quality Standards inspection before PHA executes the contract. ^[7] In Philadelphia the initial inspection can take several weeks to schedule, and a failed unit needs a re-inspection after repairs. Experienced voucher landlords plan for 60 to 90 days of vacancy between tenants to cover it.

Rent increases are regulated too. You can raise rent once per 12-month period, with proper notice to PHA and the tenant, usually 60 days. PHA checks whether the new rent stays reasonable and within payment standard limits. If it doesn't, PHA won't approve the increase, though the tenant can choose to pay the difference up to their 40% income cap.

If you're deciding whether to list your unit as apts that take section 8, or you want a step-by-step guide to joining, the HAP contract is the right starting point. VoucherReady's landlord kit runs through the full paperwork sequence, the inspection checklist, and rent-setting in one place.

The spread across submarkets is wide. For a sense of what low income housing looks like around the city: a 3-bedroom rowhome in Germantown might land right at the FMR, while the same house in Chestnut Hill could run 40% above it.

How do Philadelphia's FMRs compare to nearby metros and to historical rates?

Philadelphia's 2025 FMRs land in the middle of the pack for East Coast metros. Higher than most of the smaller mid-Atlantic cities, well below New York or Washington, DC.

Burlington, Vermont's FY2025 2-bedroom FMR is $1,609. Philadelphia's $1,647 is modestly above it, reflecting the larger and denser market. In Vermont's less populated counties, HUD fair market rent for a 2-bedroom drops into the $1,100 to $1,300 range.

Philadelphia's own history shows the climb. The FY2022 2-bedroom FMR was $1,308. By FY2025 it hit $1,647, up 26% across three fiscal years. ^[3] That reflects the post-pandemic surge in Philadelphia's rental market, which ran ahead of many comparable metros.

Here's the persistent problem: FMR growth and actual market-rent growth don't move together. In many Philadelphia neighborhoods, asking rents grew faster than FMR adjustments between 2021 and 2023, shrinking the pool of usable units. When FMR lags the market, a PHA that stays at 100% of FMR effectively shrinks the map where its vouchers work.

One honest note on the data. Nobody has clean real-time numbers on the gap between FMR and actual median asking rent at the neighborhood level in Philadelphia. The closest source is HUD's own FMR documentation and ACS supplements, which lag the market by 12 to 18 months by design. ^[1] Local housing advocates have documented the shortfall in reports, but the figures shift with methodology.

How do Small Area FMRs work in Philadelphia, and should you care?

Small Area Fair Market Rents are ZIP-code-level FMRs HUD publishes alongside the metro-wide numbers. Instead of one 2-bedroom FMR of $1,647 for the whole Philadelphia metro, SAFMRs give each ZIP its own figure based on rents there. A high-cost suburban ZIP might show a 2-bedroom SAFMR of $2,200. A cheaper ZIP in parts of North Philadelphia might show $1,100. ^[4]

HUD's rule at 24 CFR 888.113 requires certain PHAs to use SAFMRs. In metros HUD designates as Small Area FMR areas, covered PHAs must use the ZIP-level figures instead of the metro-wide FMR. The effect is direct: voucher holders in high-SAFMR ZIPs get a higher payment standard and can reach more units. Holders in low-SAFMR ZIPs get a lower one.

Whether PHA Philadelphia applies SAFMRs to your specific voucher depends on program rules that change. HUD's SAFMR page lists which metros and PHAs are covered. ^[4] Call PHA directly if you're eyeing a specific ZIP and need to know which figure applies.

For a family trying to reach a high-opportunity school district in the suburbs, SAFMRs can be the whole ballgame: the difference between a voucher that works there and one that doesn't. It's one of the most overlooked and most consequential details in the program.

What happens to your voucher when you move within or out of Philadelphia?

Vouchers are portable. Under federal portability rules, a household that has lived in PHA Philadelphia's jurisdiction for at least 12 months can port the voucher to another PHA. Survivors of domestic violence, dating violence, sexual assault, or stalking can port before hitting 12 months. ^[8]

When you port, you carry your voucher to the receiving PHA, and that PHA sets its own payment standard from its own local FMRs. Port to a lower-cost metro and your new standard may cover more of the market. Port to a higher-cost one and it may cover less. HUD fair market rent figures in Vermont vary sharply by county: a Burlington voucher covers the market reasonably well, while a Manhattan voucher covers very little of it.

Moving between Philadelphia neighborhoods but staying inside PHA's jurisdiction isn't a port. You find a new unit, submit a request for tenancy approval (RTA) for the new address, and go through inspection again. Your payment standard holds unless PHA has revised it.

Planning a move? The section 8 rent house search in the destination market is usually the hard part. Research the receiving PHA's payment standard and waitlist status before you initiate the port.

VoucherReady's tools compare payment standards across markets side by side, which is useful before you commit to a port that could leave you with fewer affordable options than you have now.

Where can you find official Philadelphia FMR data and how often does it update?

HUD publishes FMRs every fall for the coming fiscal year. It releases proposed FMRs for comment in summer, then final figures in September or October, effective October 1. ^[1]

The official source is HUD's FMR page at huduser.gov. It has a lookup tool where you pick the Philadelphia metro (or any metro or non-metro area in the country) and see current and historical FMRs by bedroom size. The SAFMR lookup lives on the same page. ^[3]

Statute drives the schedule. 42 U.S.C. 1437f(o) requires HUD to set FMRs annually to reflect the actual rental market, with the regulations at 24 CFR Part 888. ^[9]

PHA Philadelphia publishes its payment standard schedule on its own site and updates it when it makes changes. PHA isn't required to update payment standards every year, though most PHAs review them annually as HUD releases new FMRs. If you're a tenant or landlord making decisions, pull PHA's current schedule instead of calculating from FMR yourself. The two numbers are related, not identical.

Looking up hud houses for rent or hud housing for rent around Philadelphia? HUD's resource locator at resources.hud.gov is the official starting point. It lists PHAs, affordable housing developments, and Section 8 participating properties.

Frequently asked questions

What is the fair market rent for a 2-bedroom apartment in Philadelphia in 2025?

HUD's FY2025 fair market rent for a 2-bedroom in the Philadelphia-Camden-Wilmington HUD Metro FMR Area is $1,647. That figure covers gross rent, meaning rent plus tenant-paid utilities. The Philadelphia Housing Authority can set its payment standard higher or lower, anywhere from 90 to 110% of FMR, so check PHA's current schedule before assuming the two numbers match.

How is fair market rent different from the Section 8 payment standard in Philadelphia?

FMR is the number HUD publishes for the metro. The payment standard is what PHA actually uses to calculate how much it pays toward your rent. PHA can set that standard anywhere from 90 to 110% of the HUD FMR without approval. The payment standard is the number that matters most for day-to-day voucher decisions, not the FMR itself.

Does Philadelphia use Small Area Fair Market Rents or metro-wide FMRs?

HUD publishes both metro-wide FMRs and ZIP-code-level Small Area FMRs for the Philadelphia metro. Whether PHA Philadelphia applies SAFMRs to your voucher depends on HUD's current designation rules under 24 CFR 888.113. Call PHA directly or check HUD's SAFMR page at huduser.gov to confirm which standard applies to your specific voucher and destination ZIP code.

Can a Philadelphia landlord refuse to rent to a Section 8 voucher holder?

Not legally. The Philadelphia Fair Practices Ordinance bars landlords from discriminating based on source of income, which includes Section 8 vouchers. Landlords cannot post "no Section 8" ads or turn away applicants for having a voucher. Enforcement runs through the Philadelphia Commission on Human Relations. If you face a refusal, you can file a discrimination complaint with that commission.

How much of my income will I pay toward rent with a Section 8 voucher in Philadelphia?

At initial lease-up, your share cannot exceed 40% of your adjusted monthly income. After that, your share is typically 30% of adjusted monthly income, with PHA covering the rest up to the payment standard. If rent rises above the payment standard over time, your share can climb past 30%. Your housing specialist calculates the exact amount at each annual recertification.

How often does HUD update fair market rents for Philadelphia?

HUD updates FMRs every fiscal year, effective October 1. It typically releases proposed FMRs for public comment in summer and publishes final figures in September. The official source is HUD's FMR lookup tool at huduser.gov. Philadelphia's 2-bedroom FMR rose from $1,308 in FY2022 to $1,647 in FY2025, a 26% increase over three years.

What is rent reasonableness and can it block my Philadelphia voucher from being approved?

Yes. Even if a unit's rent falls below the payment standard, PHA won't approve the lease if the rent exceeds what comparable unassisted units in the area rent for. This rent reasonableness requirement is at 24 CFR 982.507. PHA uses its own database of comparable units. Landlords can challenge a finding with documented comps showing addresses, dates, and asking rents from current listings.

How does Philadelphia's FMR compare to other East Coast cities?

Philadelphia's FY2025 2-bedroom FMR of $1,647 sits in the mid-range for East Coast metros. It's modestly above Burlington, Vermont's $1,609 and well above smaller mid-Atlantic cities, but far below Washington DC and New York, which regularly run $2,500 and up for a 2-bedroom FMR. Within the metro, suburban ZIP codes often carry higher SAFMRs than the citywide average suggests.

Can I port my Section 8 voucher from Philadelphia to another city?

Yes, after 12 months in PHA Philadelphia's jurisdiction. You bring your voucher to the receiving PHA, which applies its own payment standard based on that area's FMRs. Portability is governed by 24 CFR 982.353. Survivors of domestic violence, dating violence, sexual assault, or stalking may port before completing 12 months. Contact your housing specialist at PHA to start a port.

Where can I look up current Philadelphia Housing Authority payment standards?

PHA publishes its payment standard schedule on its official website at pha.phila.gov. Payment standards can change during PHA's annual review, so check directly rather than calculating from the HUD FMR. You can also call PHA's main line or ask your housing specialist. HUD's underlying metro-wide FMR data is at huduser.gov.

What bedroom size does HUD use to determine the voucher, and can I get a larger unit?

PHA assigns a voucher bedroom size from family composition and occupancy standards, usually one bedroom per two family members plus one more. You can rent a unit of any size, but PHA applies the payment standard for your assigned voucher size, not the unit size, unless its policy says otherwise. Rent a larger unit and you likely pay the difference between the higher rent and PHA's contribution.

What is the utility allowance and how does it interact with FMR?

FMR covers gross rent, meaning rent plus utilities. If you pay your own utilities, PHA subtracts a utility allowance from the payment standard to set the maximum rent it will approve for the unit itself. If utilities are included in your rent, no adjustment is needed. Utility allowances vary by unit type, which utilities are included, and PHA schedule. Ask your housing specialist for the current schedule.

How do Philadelphia's FMRs affect low-income housing tax credit properties?

LIHTC properties set rents from area median income (AMI), not FMR, but FMR acts as a cap. HUD requires LIHTC rents not exceed the applicable FMR, so in high-cost Philadelphia submarkets where LIHTC rents could theoretically top FMR, the cap applies. This matters for developers but rarely changes the tenant experience, since LIHTC rents almost always run well below FMR in practice.

Can a landlord raise rent above the payment standard on a Section 8 tenant?

A landlord can request an increase, but PHA must approve it. PHA checks whether the new rent stays within the payment standard and passes the rent reasonableness test. If PHA approves, the tenant's share rises to cover the gap. At initial lease-up the tenant's share is capped at 40% of adjusted monthly income, but over time that cap works differently, so a tenant could end up paying significantly more.

Sources

1. HUD USER, Office of Policy Development and Research, Fair Market Rents: Overview and Methodology: HUD defines FMR as the 40th percentile of gross rents for standard quality units occupied by recent movers and publishes FMRs annually under 24 CFR Part 888
2. Code of Federal Regulations, 24 CFR Part 982, Section 8 Tenant-Based Assistance: Housing Choice Voucher Program: Payment standards may be set between 90% and 110% of FMR without HUD approval (24 CFR 982.503); tenant share at initial lease-up cannot exceed 40% of adjusted monthly income (24 CFR 982.508)
3. HUD USER, FY2025 Fair Market Rent Documentation for Philadelphia-Camden-Wilmington HUD Metro FMR Area: FY2025 fair market rents for Philadelphia metro: efficiency $1,125, 1BR $1,310, 2BR $1,647, 3BR $2,058, 4BR $2,375; FY2022 2BR FMR was $1,308
4. HUD USER, Small Area Fair Market Rents: HUD publishes ZIP-code-level Small Area FMRs for the Philadelphia metro and mandates use under 24 CFR 888.113 for designated PHAs
5. Code of Federal Regulations, 24 CFR 982.507, Rent to Owner: Reasonable Rent: PHA must determine that the rent for a voucher unit is reasonable compared to rents for similar unassisted units in the same market
6. Philadelphia Commission on Human Relations, Philadelphia Fair Practices Ordinance: The Philadelphia Fair Practices Ordinance prohibits landlords from refusing to rent based on source of income, including Section 8 vouchers
7. HUD, Housing Choice Voucher Program, Public and Indian Housing: Units must pass Housing Quality Standards inspection and PHA must execute a HAP contract before assistance payments begin
8. Code of Federal Regulations, 24 CFR 982.353, Portability: Move with Continued Assistance: Voucher holders may port to another PHA jurisdiction after 12 months of residence; exceptions apply for domestic violence survivors
9. U.S. Code, 42 U.S.C. 1437f, Low-Income Housing Assistance: Federal statute requires HUD to set fair market rents annually to reflect actual rental market conditions
10. Philadelphia Housing Authority, official website: PHA administers the Housing Choice Voucher program in Philadelphia and publishes current payment standard schedules
11. HUD, Resource Locator for affordable housing and PHA listings: HUD's resource locator lists PHAs, affordable housing developments, and Section 8 participating properties nationwide