Location: Allentown-Bethlehem-Easton, PA | Metro: Allentown-Bethlehem-Easton, PA HUD Metro FMR Area
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 | $1,120 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $322,676 | 0.49% | F |
| 3BR | $1,980 | $376,328 | 0.53% | F |
| 4BR | $2,130 | $514,857 | 0.41% | F |
| 5BR | $2,471 | $560,151 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 18014, encompassing Bath, PA, presents a dynamic rental market with clear indicators of ongoing trends. The Fair Market Rent (FMR) for the area stands at $1,390 for fiscal year 2024, while the average market rent, as reported by the Census Bureau's American Community Survey (ACS), is slightly lower at $1,232. This suggests that the rental market in Bath is competitive, with rents below the FMR potentially indicating a slight surplus of rental units.
The median home value in the area is $384,834, which places it within a moderate range compared to surrounding areas. However, the lack of data on price-cut shares and days on market (DOM) means we cannot definitively conclude whether there is an oversupply or undersupply of homes. Nonetheless, the lower market rent relative to the FMR indicates that landlords may be facing some pressure to offer competitive rates to attract tenants.
A key factor influencing the market is the 15.2% renter share. This percentage is relatively low, suggesting that the majority of residents prefer homeownership over renting. In the long term, this could indicate less immediate pressure on the rental market but also implies that a significant portion of the population may face challenges transitioning to homeownership due to the median home value. As a result, the rental market may experience sustained demand from those who cannot afford to buy homes, creating a steady flow of renters.
The interplay between these factors—rents, median home values, and the renter share—suggests a market where demand and supply are closely balanced, with occasional shifts favoring either side. Landlords and small-portfolio investors should monitor local economic conditions and housing preferences closely to adjust their strategies accordingly.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.