Location: Scranton--Wilkes-Barre, 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 | $1,020 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $161,291 | 0.92% | C |
| 3BR | $1,880 | $206,923 | 0.91% | C |
| 4BR | $2,030 | $236,711 | 0.86% | C |
| 5BR | $2,355 | $249,267 | 0.94% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 18201, Hazleton, PA, reveals a favorable environment for those seeking stable rental income. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1260, which is notably higher than the market rent of $1090 reported by the Census American Community Survey (ACS).
This means that voucher tenants can cashflow at the HUD FMR, providing a positive financial outlook for landlords. The gap between the HUD FMR and the market rent indicates that voucher holders can afford rents above the typical market rate, ensuring a steady income stream for properties participating in the Section 8 program.
To further analyze the investment potential, consider the median home value in the area, which stands at $193,194. Using this figure, we can derive the rent-to-price ratio, which is approximately 0.7%. This low ratio suggests that the cost of renting is relatively low compared to purchasing, potentially making rental investments more attractive to tenants who might otherwise be inclined to buy.
The dynamics of the local real estate market also play a role in the decision-making process for investors. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, it's clear that the buy-versus-rent scenario does not significantly impact the rental market. These metrics indicate a stable housing market where rental properties remain competitive.
In conclusion, the strongest angle for Section 8 investors in ZIP 18201 is cashflow. Given the higher HUD FMR compared to the market rent, landlords can expect to see positive cashflow from voucher tenants, making this a reliable choice for generating consistent rental income.
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.