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 | $1,220 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $262,863 | 0.66% | D |
| 3BR | $2,170 | $351,013 | 0.62% | D |
| 4BR | $2,340 | $456,674 | 0.51% | F |
| 5BR | $2,714 | $470,786 | 0.58% | F |
U.S. Census Bureau data (2024)
To decide whether you should buy in ZIP code 18067 (Northampton, PA) for Section 8 investment, follow this decision tree based on the provided data:
1) Does FMR $1410 (zip FY 2024) clear debt service on a $345,506 property?
No. The Fair Market Rent (FMR) of $1410 is unlikely to cover the debt service on a property valued at $345,506. Assuming a typical mortgage rate and term, the annual debt service would be significantly higher than the income generated by the FMR. For instance, with a 4% interest rate over a 30-year period, the monthly mortgage payment alone would be around $1670, which exceeds the FMR. This makes the property unprofitable purely from a Section 8 perspective.
It depends. If you're considering other sources of revenue such as non-Section 8 tenants or additional income streams, then the answer could be more nuanced. However, relying solely on Section 8 payments would not be sufficient to meet the financial obligations of the property.
2) Is market rent $1,698 (ZORI) above, at, or below FMR?
Above. The Zillow Observed Rental Index (ZORI) of $1,698 is higher than the FMR of $1410. This indicates that the market rent is favorable compared to the Section 8 rates, suggesting that there might be opportunities to rent to non-Section 8 tenants at a higher rate.
Below. Not applicable since the ZORI is above the FMR.
At. Not applicable since the ZORI is above the FMR.
3) Are 22.5% renters + N/A-day DOM enough demand?
Yes. With 22.5% of residents being renters, there is a decent rental demand in Northampton. However, the lack of Days on Market (DOM) data means we cannot assess how quickly properties are rented out. Despite this, the percentage of renters suggests a stable tenant base.
No. This branch is less likely given the rental percentage, but if the local rental market is highly competitive or if there are significant barriers to finding tenants, then the answer could lean towards no. However, the data does not provide specifics to support this scenario.
It depends. The absence of DOM data introduces uncertainty. A low DOM would indicate strong demand, making the investment more attractive. Conversely, a high DOM would suggest weak demand, reducing the appeal of this ZIP code for Section 8 investment.
In summary, while the rental market in Northampton appears to favor non-Section 8 tenants due to the higher ZORI, the FMR is insufficient to cover the debt service on a $345,506 property. Therefore, unless you can secure non-Section 8 tenants or have other revenue sources, purchasing in this ZIP code for Section 8 purposes is not recommended. The rental demand is moderate, but without DOM data, the final decision hinges on the ability to find tenants quickly and efficiently.
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.