Section 8 Fair Market Rent (FMR) for ZIP 18042 - 2027

Investment Score for ZIP 18042

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,350
1 Bedroom	$1,570
2 Bedrooms	$1,900
3 Bedrooms	$2,380
4 Bedrooms	$2,560
5 Bedrooms	$2,970
6 Bedrooms	$3,326
7 Bedrooms	$3,592
8 Bedrooms	$3,772

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,570	$251,837	0.62%	D
2BR	$1,900	$229,479	0.83%	C
3BR	$2,380	$263,649	0.9%	C
4BR	$2,560	$334,983	0.76%	D
5BR	$2,970	$387,537	0.77%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 18042 (Easton, PA) #### Section 8 Voucher Dynamics In ZIP code 18042, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1670 per month for 2026. This amount represents 25.8% of the median household income in Easton, which is $77,556. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $221,678. The price-to-FMR ratio is 11.1x, indicating that the actual market rent is far above the FMR. For instance, if we consider the Zillow median price for a two-bedroom home, it would translate to a monthly rent of approximately $1847 ($221,678 divided by 12 months), which is still higher than the FMR of $1670. This discrepancy suggests that voucher holders face significant constraints in finding affordable housing within their budget. They might struggle to find landlords willing to accept vouchers due to the high market rents. #### Affordability & Renter Profile The renter population in ZIP 18042 constitutes 45.0% of the total population, which is 45,532 people. With such a substantial percentage of renters, the demand for housing is likely strong. The occupancy rate of 91.1% further supports this notion, indicating that there is little vacancy and the market is relatively tight. Given the median household income of $77,556, many residents might find it challenging to afford market-rate rents, especially for larger units like three-bedroom or four-bedroom apartments, which are priced at $2130 and $2240 respectively. These high rents suggest that the market is indeed tight, with limited options for those who rely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 18042 offers mixed opportunities. While the FMRs provide a baseline for rental pricing, the actual market rents are much higher. For example, a two-bedroom apartment could potentially command a rent of $1847 based on the Zillow median price, but the FMR is only $1670. This means that landlords who accept Section 8 vouchers might see lower returns compared to market rates. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. Assuming a conservative estimate of 50% of the FMR for expenses (including mortgage, taxes, insurance, maintenance, etc.), a landlord would net around $835 per month for a two-bedroom unit. This is a modest profit margin, suggesting that while the market is tight, the investment grade is moderate. Investors should be cautious about relying solely on FMRs for rental income. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high market rents for larger units, investors might want to focus on smaller units, such as one-bedroom or zero-bedroom apartments. The FMR for these units is $1370 and $1160 respectively, which are closer to the median income levels and might attract more voucher holders. Additionally, the smaller units have lower construction and maintenance costs, making them more financially viable. 2. **Consider Location-Specific Strategies**: Within ZIP 18042, certain neighborhoods might have lower market rents compared to others. Investors should conduct a detailed neighborhood analysis to identify areas where the market rents are closer to the FMR. This could help in maximizing the potential for cash flow while still being competitive in the rental market. 3. **Explore Alternative Financing Options**: Given the tight market and the potential for lower returns when accepting Section 8 vouchers, investors might consider alternative financing options to reduce overall expenses. This could include government-backed loans, grants, or tax incentives designed to support affordable housing projects. By reducing the cost basis, investors can improve their cash flow even at FMRs. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 18042 is to **Hold**. The market is tight, with high occupancy rates and significant demand from renters. However, the actual market rents are substantially higher than the FMRs, which could limit the pool of available tenants who can use vouchers. Investors should carefully evaluate their portfolio mix and consider focusing on smaller units or exploring alternative financing strategies to enhance profitability. While there are challenges, the strong demand for rental properties in Easton makes it a worthwhile consideration for those willing to navigate the complexities of the Section 8 program.

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.