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 | $1,020 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $246,884 | 0.6% | F |
| 3BR | $1,880 | $337,809 | 0.56% | F |
| 4BR | $1,980 | $458,050 | 0.43% | F |
| 5BR | $2,297 | $434,253 | 0.53% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 18080, centered around Slatington, PA, reveals a critical gap between the Fair Market Rent (FMR) and the market rent as measured by the Zillow Rent Index (ZORI). The FMR for the area is set at $1260 for fiscal year 2024, while the ZORI indicates that the market rent is $1313. This represents a difference of $53, or approximately 4.2%, where the market rent exceeds the FMR.
This gap means that landlords accepting Section 8 vouchers will be renting properties at a rate slightly below the open-market rental rates. Given that only 19.2% of residents in Slatington are renters, the demand for rental properties might be lower compared to areas with higher percentages of renters. Additionally, the median home value in Slatington is $336,036, and the median income is $74,522, indicating that homeownership is relatively affordable and incomes are modest.
The cost of housing voucher tenants below open-market rates can be offset by several factors. First, the stability provided by the federal government backing the payments ensures consistent cash flow, which is beneficial for landlords. Second, the maintenance standards required by the Section 8 program can lead to better-maintained properties over time, potentially increasing their long-term value. Lastly, the Section 8 program offers a reliable source of tenants, reducing vacancy rates and the associated costs.
However, landlords must also consider the administrative burden and potential delays in payment processing when deciding whether to participate in the Section 8 program. Despite these challenges, the yield play is still viable in Slatington due to the relatively low percentage of renters and modest median incomes, making subsidized housing an attractive option for many residents.
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.