Location: Allentown-Bethlehem-Easton, PA | Metro: Allentown-Bethlehem-Easton, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 18035 focuses on the disparity between the Fair Market Rent (FMR) set at $1380 for fiscal year 2024 and the lack of available data for market rents in the same period. This gap highlights a critical consideration for landlords and small-portfolio investors operating in this area.
In the absence of market rent data, we must rely on the FMR figure to understand potential rental yields. With an FMR of $1380, it's essential to recognize that this represents the maximum amount that the federal government will pay landlords who accept Section 8 vouchers. However, the actual market rent could be higher, making the difference between FMR and market rent a significant factor in investment decisions.
The median home value in ZIP 18035 stands at $455,201, which indicates a relatively high-value residential area. Despite this, only 0.0% of residents are classified as renters, suggesting a predominantly owner-occupied community. This low rental rate can impact the demand for rental properties, including those that might attract Section 8 voucher holders.
If the market rent were known and found to be above the FMR, landlords would face a scenario where accepting Section 8 tenants means renting below the open-market rate. For example, if the market rent were $1600, the landlord would receive $1380 from the voucher program, resulting in a shortfall of $220 per month, or approximately 13.75% below the market rate. This cost of housing voucher tenants below open-market rates can influence the overall profitability and attractiveness of rental investments in this area.
To conclude, the analysis for ZIP 18035 underscores the importance of understanding local rental dynamics and the implications of accepting Section 8 tenants. Given the high median home value and low percentage of renters, landlords should carefully evaluate the financial impact of renting below market rates to accommodate voucher holders. The decision to participate in the Section 8 program should be made with a clear understanding of the potential yield and the specific costs associated with serving this tenant base.
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.