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 | $1,350 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,380 | $349,600 | 0.68% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 18085 stands at $112,813, which places residents in a relatively high-income bracket. However, the market rate for rent at $1,647 per month presents a significant challenge for households in this area. This rental cost represents approximately 18% of the median annual income, which is above the generally recommended threshold of 30% of monthly income for housing expenses. This suggests that while many residents can technically afford the market rate, it may strain their budgets.
In comparison, the Section 8 voucher payment standard is set at $1,260 per month, which is notably lower than the market rate. This difference highlights an affordability gap for low-income renters who rely on vouchers. The voucher amount covers around 13% of the median annual income, making it a more manageable expense for those receiving assistance.
With 28.2% of the 1,175 population being renters, the competition among landlords is likely to be moderate. However, the affordability gap means that landlords who accept Section 8 vouchers may have a more stable tenant base but will also face lower rental income compared to those charging market rates. Landlords should consider the trade-offs between accepting vouchers, which ensures consistent and government-backed payments, and cash-paying tenants who might offer higher rents but come with greater risk.
The takeaway for landlords is that while there is a demand for rental properties in ZIP 18085, the decision to accept Section 8 vouchers versus cash-paying tenants should be based on a careful assessment of the local rental market and the financial stability they seek. Accepting vouchers can attract a steady stream of tenants, whereas focusing on cash-paying tenants might yield higher immediate returns but requires a robust understanding of the area's economic dynamics.
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.