Location: Sullivan County, PA | Metro: Scranton--Wilkes-Barre, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 17814 might have several concerns regarding the feasibility of investing in a Section 8 property. Let's address these specific objections with the available data.
The Fair Market Rent (FMR) for ZIP 17814 in fiscal year 2024 is set at $1070. This figure represents the maximum amount that a Section 8 tenant can pay towards their housing costs. To determine if this amount covers the mortgage, we need to consider the prevailing interest rates and the term of the loan. Assuming an average interest rate and a standard 30-year fixed mortgage, the monthly payment on a $240,584 home could be around $1,070 or slightly higher depending on the exact rate. Therefore, the FMR of $1070 will closely align with the mortgage payment but may not fully cover it without additional income sources such as co-pays from tenants or other rental income.
The percentage of renters in ZIP 17814 stands at 19.3%. This figure suggests a moderate level of demand, but it's important to note that the actual number of potential tenants depends on the total population and the size of the rental market. A 19.3% rental rate indicates that nearly one-fifth of the residents are renters, which is a significant portion. However, the data does not provide specifics on the number of Section 8 eligible individuals or households, so we cannot conclusively state that there is sufficient demand for Section 8 units. Landlords should conduct further research to understand the local rental market dynamics and the supply of affordable housing.
The current market rent in ZIP 17814 is reported to be $923. While the FMR is higher at $1070, it's crucial to assess whether the voucher amounts issued by the local housing authority will match the actual market conditions. The data provided does not specify the exact voucher amounts for the area, but historically, voucher programs aim to cover a substantial portion of the market rent. If the voucher amount is close to or exceeds $923, then it should be adequate. However, if the voucher amount is lower, landlords may face challenges in covering operational costs or achieving profitability. It's advisable to check the latest voucher guidelines from the local housing authority to ensure alignment with market rents.
In conclusion, while the data provides insights into the financial aspects of investing in ZIP 17814, some questions remain unanswered. For instance, the exact number of Section 8 eligible individuals and the precise voucher amounts are critical pieces of information that aren't fully addressed here. Investors must perform due diligence to gather comprehensive data before making investment decisions.
Data Sources: FMR data from HUD (2027). 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.