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 | $1,280 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,270 | $352,441 | 0.64% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 18083, located within the Allentown-Bethlehem-Easton, PA HUD Metro FMR Area, reveals several key insights for landlords and small-portfolio investors.
Firstly, the rent math does not favor Section 8 participation. The Federal Market Rent (FMR) for the area is set at $1420 for fiscal year 2024, whereas the Census ACS reports a market rent of $1182. This discrepancy means that landlords accepting Section 8 tenants would receive a higher rent than the average market rate, but it also suggests that the gap between FMR and market rent is not substantial enough to offset potential administrative burdens or other costs associated with Section 8 tenancy.
Secondly, acquiring properties in this ZIP code appears affordable. The median home value stands at $333,473, which is relatively low compared to many metropolitan areas. However, the lack of data on days on market (DOM) and the percentage of homes that have required price cuts indicates that there might be limited recent transactional activity to gauge the current market dynamics accurately.
Thirdly, there is a modest tenant demand. With a total population of 489 and a 21.4% renter share, landlords can expect a smaller pool of potential tenants. Given the low population density, the number of renters seeking housing is correspondingly small, which could affect occupancy rates and the speed at which units are filled.
In summary, while the FMR exceeds the market rent, making Section 8 participation financially viable, the overall environment in ZIP 18083 presents challenges. The affordability of property acquisition is balanced by the uncertainty of market conditions due to incomplete data. Additionally, the limited tenant demand poses risks to maintaining high occupancy levels. Landlords and investors should proceed with caution, considering these factors before committing to Section 8 participation in this area.
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.