Section 8 Fair Market Rent (FMR) for ZIP 18237 - 2027
Location: Schuylkill County, PA | Metro: Allentown-Bethlehem-Easton, PA HUD Metro FMR Area
Investment Score for ZIP 18237
N/A
Monthly Rent (2BR)
$1,480
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| 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 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 3BR |
$1,880 |
$175,079 |
1.07% |
B |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$47,174
When considering whether to purchase a property in ZIP code 18237 for Section 8 investment, follow this decision tree:
Step 1: Determine if the Fair Market Rent (FMR) of $1260 can cover the debt service on a property valued at $164,601.
- If Yes: Proceed to Step 2.
- If No: Do not invest. The FMR does not provide sufficient income to meet financial obligations.
Step 2: Compare the market rent of $992 against the FMR.
- If Market Rent is Below FMR: There is potential for profit since Section 8 will pay the higher FMR rate. Continue to Step 3.
- If Market Rent Equals FMR: It depends on your tolerance for risk and the specific conditions of the rental market. Equal rates mean no premium but also less risk of vacancy. Continue to Step 3.
- If Market Rent is Above FMR: Do not invest. The higher market rent suggests that you might miss out on potential higher returns by limiting yourself to Section 8 tenants.
Step 3: Assess the demand for rentals in the area.
- If 34.6% of residents are renters and the days on market (DOM) are low or favorable: Yes, invest. The significant portion of renters indicates strong demand, which is critical for maintaining occupancy and steady cash flow.
- If 34.6% of residents are renters but the DOM is high: It depends. High DOM could indicate challenges in finding tenants, despite the percentage of renters. Investigate further into local market conditions and competition.
- If the percentage of renters is significantly lower or the DOM is unfavorable: No, do not invest. Insufficient demand means difficulty in filling units, leading to potential financial strain.
The key metrics to review are the FMR and market rent figures, alongside the percentage of renters and days on market. These factors will guide your decision on whether ZIP 18237 is a viable location for Section 8 investment.
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.