Location: Allentown-Bethlehem-Easton, PA | Metro: Allentown-Bethlehem-Easton, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
U.S. Census Bureau data (2024)
The median income in ZIP code 18079 stands at $96,071, indicating a relatively affluent area. However, without a specific figure for the market rate of rent, it's challenging to assess whether households can comfortably cover their housing costs. The Fair Market Rent (FMR) set by HUD for ZIP 18079 for fiscal year 2024 is $1260. This figure represents the amount that a Section 8 voucher holder can use towards rent, which is typically lower than the market rate in most areas.
The data reveals that there are no renters currently in ZIP 18079, with only 303 people residing in the area. This absence of renters suggests a highly competitive market for landlords, as they will need to attract tenants from outside the immediate ZIP code. The low number of residents also implies a smaller potential pool of voucher holders, which could limit the demand for subsidized housing units.
The affordability gap, represented by the difference between the median income and the FMR, highlights the financial challenge for voucher holders. A household earning the median income would find the FMR of $1260 well within their budget, but this doesn't account for other living expenses or the actual market rent, which remains unspecified. If the market rent significantly exceeds the FMR, it could deter voucher holders from renting properties in ZIP 18079, especially if they face additional competition from non-subsidized renters.
Takeaway for Landlords: Given the lack of current renters and the potentially high market rates, landlords should carefully consider their strategy. While the FMR of $1260 might be appealing to voucher holders, it may not cover the cost of maintaining competitive rental standards in an affluent area. Landlords aiming to maximize their returns should focus on attracting higher-paying, cash-paying tenants who can afford the likely premium rents. However, those willing to accept Section 8 vouchers should prepare for limited demand due to the area's overall affluence and the unknown disparity between market rent and the FMR.
Data Sources: FMR data from HUD (2027). 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.