Location: Monroe County, 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 | $1,240 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $284,261 | 0.62% | D |
| 3BR | $2,190 | $360,484 | 0.61% | D |
| 4BR | $2,360 | $538,956 | 0.44% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,260 for ZIP 18091 (Wind Gap, PA) can cover the mortgage on a home valued at $365,898. According to recent data, the median home value in Wind Gap is $284,300, indicating that the $365,898 home is above average in price. To determine if the FMR will cover the mortgage, one must consider the interest rates and loan terms. Assuming a standard 30-year fixed-rate mortgage at today's average interest rate, the monthly payment for a $365,898 home could be around $1,600 to $1,800. Therefore, the FMR of $1,260 would not fully cover the mortgage, leaving a shortfall that the landlord would need to cover.
The second objection concerns the level of renter demand in Wind Gap, with only 38.6% of housing units occupied by renters. The rental vacancy rate in the area is reported to be zero, suggesting strong demand for rental properties despite the relatively low percentage of renters. However, the high median home value indicates that many residents may prefer homeownership over renting. This means that while there is demand, it may not be sufficient to ensure a steady stream of tenants for all rental properties, especially those priced at the higher end of the market.
The final concern is whether the Section 8 voucher program can keep pace with the market rents, which are currently around $1,354. The FMR set by HUD is designed to reflect the typical rent for decent, safe, and sanitary housing. At $1,260, the FMR is slightly below the market rent, but the gap is not excessively large. Landlords who accept Section 8 vouchers should expect to receive rent close to the FMR, with some potential for additional subsidies or adjustments based on local conditions. It's important to note that the voucher program aims to cover a significant portion of the rent, typically up to the FMR, so landlords may still find it financially viable even if the FMR does not fully match the market rent.
In summary, while the FMR of $1,260 may not fully cover the mortgage on a $365,898 home, there is strong demand for rental properties in Wind Gap due to a zero vacancy rate. The 38.6% renter occupancy rate suggests that the majority of residents prefer homeownership, but the rental market remains competitive. Lastly, although the FMR is slightly below the market rent, the Section 8 voucher program should provide a reasonable income for landlords, making it a viable option for investment in the 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.