Location: Schuylkill County, PA | Metro: Scranton--Wilkes-Barre, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 18241 for Section 8 properties must evaluate several key factors to make an informed decision. The first step is to assess whether the Fair Market Rent (FMR) of $1160 for the fiscal year 2024 can cover the debt service on a property valued at $150,517. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. To determine if the FMR clears these expenses, you need to calculate the total annual debt service and compare it against the annual rental income. Assuming a conservative estimate, if the annual debt service is less than $13,920 (which is 12 times the FMR), then the answer is yes; the FMR does clear the debt service.
The second consideration is comparing the market rent of $670 (as per the Census ACS data) with the FMR. If the market rent is below the FMR, then the landlord has room to increase rents without losing tenants. In this case, since the market rent is significantly lower than the FMR, the landlord can charge closer to the FMR, which means a yes to this criterion. This gap indicates that Section 8 vouchers can subsidize the difference, making the property financially viable.
The third factor is assessing the demand for rentals in ZIP 18241. With 16.6% of the population being renters and the days on market (DOM) data being listed as N/A, we can infer that there is a moderate level of demand. However, the lack of DOM data makes it challenging to fully gauge the speed at which units are rented out. Given the 16.6% rental rate, it suggests that there is enough demand to support a Section 8 property, leading to an answer of yes. However, landlords should be cautious about the N/A DOM data and consider other local market indicators to ensure steady occupancy rates.
Decision Tree:
Conclusion: Based on the provided data, the FMR of $1160 can cover the debt service on a property priced at $150,517, assuming the debt service is under $13,920 annually. The market rent being $670 is below the FMR, providing a buffer for potential increases. Lastly, with 16.6% of the population renting, there is sufficient demand to justify a Section 8 investment in ZIP 18241. However, landlords should be wary of the missing DOM data and investigate further into the local rental market dynamics.
Data Sources: FMR data from HUD (2027). 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.