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 | $1,610 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,270 | $316,252 | 0.72% | D |
| 3BR | $2,850 | $374,482 | 0.76% | D |
| 4BR | $3,060 | $517,301 | 0.59% | F |
| 5BR | $3,550 | $571,909 | 0.62% | D |
U.S. Census Bureau data (2024)
Allentown, Pennsylvania's ZIP code 18104 stands out within Lehigh County due to its unique demographic and economic characteristics. With a population of 48,683 residents, 29.0% of whom rent their homes, the area has a median income of $94,601. The median home value in this ZIP is $393,755, reflecting a stable housing market that is relatively affordable compared to other parts of the county.
The voucher economics in ZIP 18104 present an interesting opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,690, which is significantly lower than the Zillow Observed Rent Index (ZORI) of $2,159. This discrepancy means that landlords can still attract tenants through the Section 8 program while maintaining competitive rental rates that are below the market average. It also indicates that there is room for rental prices to increase without deterring potential tenants who benefit from the voucher system.
Given the data signature, ZIP 18104 appears to be a stable area. The relatively low percentage of renters and the median income level suggest a balanced community where homeownership is common but not exclusive. The median home value is also indicative of a moderate cost of living, making it attractive for both long-term residents and newcomers seeking affordable housing options. The voucher economics further support stability, as they provide a consistent source of rental income for landlords who participate in the program. Overall, the data points to a community that is unlikely to experience rapid changes in the near future, offering predictability for real estate investments.
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.