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 | $1,470 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $312,692 | 0.66% | D |
| 3BR | $2,600 | $386,632 | 0.67% | D |
| 4BR | $2,790 | $547,045 | 0.51% | F |
| 5BR | $3,236 | $652,302 | 0.5% | F |
U.S. Census Bureau data (2024)
18020 ZIP code in Bethlehem, PA, has a Fair Market Rent (FMR) set at $1810 for fiscal year 2024, indicating the maximum amount Section 8 recipients can pay for housing. The actual market rent, measured by ZORI, stands at $2,495, showing a significant gap between what the government deems fair and the reality faced by renters. With a median home value of $422,939, the area presents opportunities for homeownership but also challenges for those looking to rent. Renter share in this ZIP code is 14.2%, suggesting a notable portion of the population relies on rental properties. Landlords should note that the median income in the area is $126,166, which provides insight into the financial capacity of potential tenants. While the data does not specify the average days on market (DOM), the low price-cut share of 0.2% suggests that properties are likely selling or renting at their listed prices without significant adjustments. For small-portfolio investors considering Section 8 participation, the discrepancy between the FMR and market rent highlights the need for careful analysis of property costs and tenant subsidies. The verdict on Section 8 for this area is positive, given the substantial difference between the FMR and market rents, making it a viable option for landlords seeking stable tenancy.
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.