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 | $1,200 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $309,904 | 0.55% | F |
| 3BR | $2,120 | $388,863 | 0.55% | F |
| 4BR | $2,280 | $597,974 | 0.38% | F |
| 5BR | $2,645 | $721,377 | 0.37% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 18064, which includes Nazareth, Pennsylvania, is set at $1330 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit in this area, but it does not reflect the actual rent paid by the tenant. The tenant's portion of the rent is typically based on their income, and the government covers the difference up to the FMR.
In comparison, the local median rent for a two-bedroom apartment is $1,479, as indicated by the Zillow Observed Rent Index (ZORI). This means that landlords participating in Section 8 might see slightly lower rents than the market average, but they also benefit from guaranteed monthly payments from the housing authority.
The 24.6% renter share in the area suggests a significant demand for affordable housing. With nearly a quarter of the population relying on rentals, there is a consistent need for units, particularly those that cater to low-income families.
When considering an investment property in this ZIP code, the typical acquisition cost for a rental property is around $445,708. This figure should be used to evaluate the potential return on investment, factoring in the FMR and local rental prices.
A critical step before proceeding with a Section 8 rental is to verify that the property meets all the required standards set by the local housing authority. These standards ensure that the living conditions are safe and habitable, which is essential for both the tenants and the landlord.
In summary, while the FMR of $1330 might be slightly below the local median rent of $1,479, the stable and reliable payment structure makes Section 8 a viable option for landlords and small-portfolio investors. The strong demand for rental properties, represented by the 24.6% renter share, supports this investment. However, before committing, ensure your property complies with the necessary housing standards.
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.