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 | $1,280 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,810 | $238,708 | 0.76% | D |
| 3BR | $2,270 | $276,875 | 0.82% | C |
| 4BR | $2,440 | $315,171 | 0.77% | D |
| 5BR | $2,830 | $269,112 | 1.05% | B |
U.S. Census Bureau data (2024)
The rent math in ZIP 18109, located in Allentown, PA, does not work favorably for landlords. The Fair Market Rent (FMR) set at $1380 for the fiscal year 2024 is notably lower than the current market rent, which stands at $1,640 according to ZORI. This discrepancy means that landlords might struggle to cover costs and maintain profitability if they adhere strictly to the FMR guidelines.
Acquisition in this area is relatively affordable. With a median home value of $265,240, potential investors can purchase properties without needing an excessive budget. However, the lack of available data on days on market (DOM) and the low price-cut share indicate that the housing market may be tight, with few homes being listed for sale and even fewer being discounted. This could pose challenges for investors looking to acquire properties quickly or at a bargain price.
Tenant demand in ZIP 18109 is robust. The area has a population of 18,446 residents, with 47.9% of them being renters. This significant portion of the population indicates a steady pool of potential tenants, which is crucial for maintaining occupancy rates and ensuring a consistent cash flow for rental properties.
In summary, while the rent math does not favor landlords due to the disparity between FMR and market rents, the acquisition cost remains within a reasonable range. The strong tenant demand provides a solid foundation for rental investments. Landlords and small-portfolio investors should consider these factors carefully and possibly look into areas where FMR aligns more closely with market rents for optimal returns.
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.