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 | $1,470 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $245,701 | 0.84% | C |
| 3BR | $2,600 | $365,580 | 0.71% | D |
| 4BR | $2,790 | $542,990 | 0.51% | F |
| 5BR | $3,236 | $729,819 | 0.44% | F |
U.S. Census Bureau data (2024)
Allentown, PA's ZIP code 18106, situated within the Allentown-Bethlehem-Easton, PA HUD Metro FMR Area, has a Fair Market Rent (FMR) of $1970 for fiscal year 2024. This figure is higher than the average market rent of $1,419, indicating that the rental market in this area is above the typical rates seen across other ZIP codes in the metro region.
The median home value in ZIP 18106 stands at $442,375, which is relatively consistent with the broader metropolitan area. However, the renter share in this ZIP code is 17.5%, slightly above the average for the Allentown-Bethlehem-Easton, PA HUD Metro FMR Area. This suggests that while the rental rates are higher, the property values remain comparable to the rest of the metro, making it an attractive option for landlords and investors seeking higher rental income without significantly higher property costs.
The divergence between the FMR and market rent, alongside the higher-than-average renter share, points towards 18106 being a prime location for Section 8 properties. The higher FMR indicates that the government subsidy rates are favorable, supporting landlords who participate in the program. Additionally, the elevated renter share implies a substantial demand for affordable housing, aligning well with the objectives of the Section 8 program.
In conclusion, ZIP 18106 can be classified as a mid-tier neighborhood within the Allentown-Bethlehem-Easton, PA HUD Metro FMR Area. It offers higher rental income potential supported by government subsidies, while maintaining property values in line with the metro average. This combination makes it a strategic choice for real estate investment, particularly for those interested in leveraging Section 8 opportunities.
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.