🔴 CRITICAL: PHA 2024-2025 Payment Changes Analysis
Comprehensive Impact Assessment for Current and Prospective PHA Landlords
⚠️ MAJOR STRUCTURAL CHANGES IMPLEMENTED
PHA has dramatically restructured the payment schedule for 2025, including reclassifying 47 of 51 zip codes, introducing a new 5th payment tier, and implementing mixed rate changes (increases and decreases). This is the most significant overhaul in recent years and will substantially impact landlord revenues.
PHA has dramatically restructured the payment schedule for 2025, including reclassifying 47 of 51 zip codes, introducing a new 5th payment tier, and implementing mixed rate changes (increases and decreases). This is the most significant overhaul in recent years and will substantially impact landlord revenues.
Executive Summary: The Big Picture
Zip Codes Reclassified
47/51
(92% of all zip codes)
New Payment Tier Added
Group 5
(High Opportunity Rents)
Average Rate Change
Mixed
(Varies by location)
What This Means: PHA has completely reorganized how Philadelphia is classified. Nearly every landlord will see their payment rates change—some dramatically. Some zip codes moved UP multiple tiers (good news), while others moved DOWN (bad news). The changes are NOT uniform across the city.
🔍 ZIP CODE LOOKUP TOOL - Find Your Exact Impact
Use this tool first! Select your zip code and unit size below to see exactly how PHA rate changes will affect your specific property.
1. Structural Changes: From 4 Groups to 5 Groups
2024 Structure (4 Groups)
| Group | Classification | Zip Codes | % of Total |
|---|---|---|---|
| Group 1 | Traditional Rents | 13 | 25.5% |
| Group 2 | Mid Range Rents | 25 | 49.0% |
| Group 3 | Opportunity Rents | 6 | 11.8% |
| Group 4 | High Opportunity Rents | 7 | 13.7% |
2025 Structure (5 Groups)
| Group | Classification | Zip Codes | % of Total | Change from 2024 |
|---|---|---|---|---|
| Group 1 | Basic Rents | 4 | 7.8% | -9 zips (-69%) |
| Group 2 | Traditional Rents | 21 | 41.2% | -4 zips (-16%) |
| Group 3 | Mid Range Rents | 14 | 27.5% | +8 zips (+133%) |
| Group 4 | Opportunity Rents | 6 | 11.8% | Same count, different zips |
| Group 5 | High Opportunity Rents | 6 | 11.8% | NEW TIER |
2. Rate Comparison: All Groups and Unit Sizes
2 Bedroom Rate Comparison (Most Common Unit Size)
| 2025 Group | Classification | 2024 Rate (2BR) | 2025 Rate (2BR) | $ Change | % Change | Annual Impact |
|---|---|---|---|---|---|---|
| Group 1 | Basic Rents | $1,480 | $1,420 | -$60 | -4.1% | -$720 |
| Group 2 | Traditional Rents | $1,830 (G2) | $1,660 | -$170 | -9.3% | -$2,040 |
| Group 3 | Mid Range Rents | $1,830 (G2) | $2,010 | +$180 | +9.8% | +$2,160 |
| Group 4 | Opportunity Rents | $2,350 (G3) | $2,330 | -$20 | -0.9% | -$240 |
| Group 5 | High Opportunity Rents | $2,700 (G4) | $2,720 | +$20 | +0.7% | +$240 |
3. Key ZIP Code Movements
🎉 ZIP Codes That Moved UP (Higher Payments)
| Zip Codes | 2024 Group | 2025 Group | 2BR Monthly Change | 2BR Annual Impact |
|---|---|---|---|---|
| 19120, 19126, 19136, 19139, 19140, 19142, 19143, 19151 | Group 1 | Group 2 | +$180 | +$2,160/year |
| 19101, 19104, 19105, 19109, 19110, 19112, 19114, 19131, 19145, 19148, 19149, 19153, 19154 | Group 2 | Group 3 | +$180 | +$2,160/year |
| 19102, 19103, 19106, 19107, 19130, 19147 | Group 4 | Group 5 | +$20 | +$240/year |
⚠️ ZIP Codes That Moved DOWN or Lost Value
| Zip Codes | 2024 Group | 2025 Group | 2BR Monthly Change | 2BR Annual Impact |
|---|---|---|---|---|
| 19124, 19132, 19133, 19141 | Group 1 | Group 1 | -$60 | -$720/year |
| 19111, 19115, 19116, 19119, 19121, 19122, 19134, 19135, 19137, 19138, 19144, 19150, 19152 | Group 2 | Group 2 | -$170 | -$2,040/year |
| 19118, 19125, 19127, 19128, 19146 | Group 3 | Group 4 | -$20 | -$240/year |
| 19123, 19129 | Group 3/4 | Group 3/4 | -$20 to -$340 | -$240 to -$4,080/year |
4. Strategic Implications for Landlords
Strategy 1: Geographic Positioning
Properties in areas that moved UP tiers (like 19101-19154 moving from Group 2 to Group 3) will see significant revenue increases. Consider maintaining or expanding in these markets.
Strategy 2: Risk Assessment
Zip codes that stayed in the same group but lost value (like Group 2 zips losing $170/month) represent the biggest hidden risk. These properties face rate decreases without any group movement warning.
Strategy 3: Portfolio Rebalancing
Landlords with multiple properties should analyze their overall portfolio impact. A property in 19111 (losing $2,040/year) might be offset by one in 19120 (gaining $2,160/year).
Annual Impact Examples
| Scenario | Zip Code | Unit Type | 2024 Annual | 2025 Annual | Change |
|---|---|---|---|---|---|
| Best Case | 19102 | 3 BR | $39,000 | $39,120 | +$120 |
| Good Case | 19120 | 2 BR | $17,760 | $19,920 | +$2,160 |
| Bad Case | 19111 | 2 BR | $21,960 | $19,920 | -$2,040 |
| Worst Case | 19124 | 3 BR | $21,360 | $20,400 | -$960 |
5. Action Items for Landlords
Immediate Actions (Next 30 Days)
- Use the ZIP Code Lookup Tool at the top of this report to check every property you own
- Calculate your portfolio-wide impact - Add up all gains and losses across all properties
- Review your cash flow projections - Adjust 2025 budgets based on new rates
- Contact PHA if you have questions about your specific properties
Strategic Planning (Next 90 Days)
- Properties with losses: Evaluate whether to continue participation or explore other rental markets
- Properties with gains: Consider increasing quality/services to maintain competitiveness
- New acquisitions: Focus on zip codes in Groups 3-5 for better long-term returns
- Portfolio optimization: Consider selling underperforming properties in declining zones
⚠️ Critical Deadline: These rates are effective for 2025. Ensure all lease agreements and payment expectations are updated before January 1, 2025.
