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 | $1,340 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,370 | $184,381 | 1.29% | A |
| 4BR | $2,550 | $202,878 | 1.26% | A |
| 5BR | $2,958 | $239,452 | 1.24% | A |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 18101 are significant and should be carefully considered. Tenant turnover is a critical issue, with the market rent at $1,675 compared to the Federal Market Rent (FMR) of $1,320 for FY 2024. This discrepancy can lead to frequent changes in occupancy, which increases administrative burdens and costs associated with screening and onboarding new tenants.
Vacancy exposure is another concern. The Days on Market (DOM) data is currently unavailable, making it difficult to predict how long properties might remain vacant between tenancies. High vacancy rates can result in lost rental income and increased property management expenses.
Deferred maintenance is also a notable risk. With a typical home value of $205,567 and a median income of $44,773, many residents may struggle to afford necessary repairs and upgrades. Landlords must be prepared to handle these maintenance issues, which can be costly and time-consuming.
However, these risks are balanced by the high renter share of 91.7%. Such a large proportion of renters in the area generally translates into higher demand for housing vouchers, indicating a robust market for Section 8 properties. Despite the challenges, the strong rental demand suggests that there will likely be consistent interest in subsidized housing options.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.