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 | $1,820 |
| 1 Bedroom | $2,120 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,220 |
| 4 Bedrooms | $3,470 |
| 5 Bedrooms | $4,025 |
| 6 Bedrooms | $4,508 |
| 7 Bedrooms | $4,869 |
| 8 Bedrooms | $5,112 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,570 | $332,096 | 0.77% | D |
| 3BR | $3,220 | $386,339 | 0.83% | C |
| 4BR | $3,470 | $554,824 | 0.63% | D |
| 5BR | $4,025 | $605,542 | 0.66% | D |
U.S. Census Bureau data (2024)
ZIP 18045, located in Easton, PA, is best categorized as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $1830, which is significantly below the market rent of $2215. This creates a $385 spread per unit, providing a reliable cushion against potential rent shortfalls.
The median home value of $411,774 suggests that property values in this area are relatively stable, offering a solid base for long-term investment. While appreciation plays typically look for areas with rising property values, ZIP 18045 offers a different kind of stability through its lower-than-market FMR rates.
With a 0.2% price-cut share and a 12-day Days on Market (DOM), the rental market is efficient and competitive, but these factors alone do not outweigh the significant cash-flow advantage provided by the FMR rate.
A diversifier would be more appropriate if the renter share was higher, or if the median income indicated a broader range of economic activity. At 19.3%, the renter share is moderate, and the median income of $114,528 is consistent with the overall economic profile of the area, suggesting a middle-class tenant base.
In conclusion, ZIP 18045 serves as a cash-flow anchor due to the substantial difference between the FMR and market rents, ensuring steady and predictable returns for landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.