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 | $1,020 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,210 | $188,577 | 0.64% | D |
| 2BR | $1,480 | $227,353 | 0.65% | D |
| 3BR | $1,880 | $288,103 | 0.65% | D |
| 4BR | $1,980 | $347,996 | 0.57% | F |
| 5BR | $2,297 | $329,973 | 0.7% | D |
U.S. Census Bureau data (2024)
1260 is the Fair Market Rent (FMR) for ZIP 18235, Lehighton, PA, set for fiscal year 2024. 1055 is the average market rent reported by the Census Bureau's American Community Survey, indicating a slight premium landlords can charge over the FMR. 276,143 is the median home value in the area, suggesting a relatively stable housing market. 23.0 is the percentage of households that rent, showing a modest demand for rental properties but also highlighting potential competition from owner-occupied homes. 72,571 is the median income in Lehighton, which is crucial for assessing the financial capacity of potential tenants. The day DOM (Days on Market) figure is N/A, likely due to limited data availability, though it does not detract from the overall picture of the market. 0.2 is the percentage of listings that have been price-cut, reflecting a low rate of price adjustments and implying that the market is fairly efficient in pricing properties.
Given these numbers, the gap between the FMR and the market rent suggests opportunities for landlords to leverage higher rents while still being within the bounds of affordability for tenants. The median home value indicates a stable housing market, which can be beneficial for long-term investments. With only 23.0 percent of households renting, landlords should focus on attracting tenants who are willing to pay slightly above the FMR. The median income of 72,571 supports the ability of residents to afford rents at or near the FMR. The low price-cut share of 0.2 percent implies that once a property is priced correctly, it will likely attract tenants without the need for significant adjustments.
The verdict for Section 8 participation in ZIP 18235 is positive, given the alignment between the FMR and the local market conditions, making it a viable option for landlords looking to secure steady tenancy.
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.