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 | $1,170 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $286,184 | 0.56% | F |
| 3BR | $2,050 | $380,740 | 0.54% | F |
| 4BR | $2,270 | $502,645 | 0.45% | F |
U.S. Census Bureau data (2024)
Danielsville, PA, located in ZIP code 18038, falls within the Allentown-Bethlehem-Easton, PA HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 is set at $1,420. To contextualize this figure, we must compare it to other ZIP codes within the same metro area. The average market rent for Danielsville is $1,608, which is slightly above the FMR. This indicates that the rental market in Danielsville is moderately priced compared to the HUD's benchmark.
The median home value in ZIP 18038 is $378,012, which is lower than the typical home values found in many parts of the Allentown-Bethlehem-Easton metro area. This suggests that Danielsville offers a relatively affordable option for both homeowners and investors looking to enter the market.
The renter share in Danielsville stands at 5.7%, which is notably low compared to urban centers within the metro area. Typically, urban areas have higher renter shares due to factors such as higher housing costs and limited space for owning property. However, the combination of a below-average home value and a modest renter share in Danielsville does not strongly indicate a Section 8 sweet spot, as a high renter share is usually a key characteristic of such neighborhoods.
Based on these figures, ZIP 18038 appears to be a mid-tier neighborhood within the Allentown-Bethlehem-Easton metro area. It is neither the most expensive nor the least expensive sub-market. The slightly above-FMR market rent and below-average home value suggest a balanced investment opportunity where properties are accessible but not necessarily undervalued.
To further refine this analysis, consider the following:
In conclusion, while Danielsville, PA, in ZIP 18038, is not a standout value pocket or premium sub-market within the Allentown-Bethlehem-Easton metro area, it represents a middle ground where investments can be made without the risks associated with either extreme. For landlords and small-portfolio investors, this balance can offer a steady and reliable market presence.
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.