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 | $1,850 |
| 1 Bedroom | $2,160 |
| 2 Bedrooms | $2,610 |
| 3 Bedrooms | $3,270 |
| 4 Bedrooms | $3,520 |
| 5 Bedrooms | $4,083 |
| 6 Bedrooms | $4,573 |
| 7 Bedrooms | $4,939 |
| 8 Bedrooms | $5,186 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,610 | $472,606 | 0.55% | F |
| 3BR | $3,270 | $420,580 | 0.78% | D |
| 4BR | $3,520 | $760,129 | 0.46% | F |
| 5BR | $4,083 | $963,258 | 0.42% | F |
U.S. Census Bureau data (2024)
The Center Valley, PA area (ZIP 18034) presents a unique opportunity for Section 8 real-estate investors. The HUD Fair Market Rent (FMR) for this region is set at $2090 per month for fiscal year 2024. In contrast, the market rent based on Census ACS data stands at $1760, indicating that voucher tenants can generate positive cash flow when renting properties at the HUD FMR.
To further analyze the investment potential, consider the median home value in the area, which is $561,802. This figure yields a rent-to-price ratio of approximately 0.37%, calculated by dividing the annual HUD FMR ($25,080) by the median home value. This ratio suggests that rental income is relatively low compared to property values, but it still offers a stable source of cash flow for investors.
Despite the lack of specific data on days on market (DOM) and price cut shares, the strong cash flow potential derived from the difference between HUD FMR and market rent remains a compelling factor. The absence of these metrics does not significantly impact the decision-making process for Section 8 investors, given the primary focus on steady rental income rather than quick turnover or price adjustments.
The strongest angle for investors in this market is the cash flow. With voucher tenants paying above the market rate, landlords can expect consistent, positive cash flow without the need for premium units, making this an attractive option for those seeking reliable returns.
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.