Location: Schuylkill County, PA | Metro: Schuylkill County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 18245 reveals several key points. First, let's consider the annualized Fair Market Rent (FMR) for a two-bedroom unit, which is set at $1,060 per month for fiscal year 2026. This translates to an annual rental income of $12,720 for a two-bedroom property under the Section 8 program.
Given that the median home value in ZIP 18245 is not available, we cannot directly calculate a precise cap rate. However, we can infer some trends based on the available data. With a 32.3% renter density, it indicates that about one-third of the households in this area are renters, which could suggest a moderate demand for rental properties.
In the scenario where the property is rented through the Section 8 program, the gross yield would be derived from the annual rental income of $12,720. If we assume a typical median home value for the region, say $200,000 (this is an assumption due to lack of specific data), the implied gross yield would be 6.36%. This is calculated by dividing the annual rental income ($12,720) by the assumed median home value ($200,000).
Since the market rent is also not available, we cannot provide a direct comparison with the Section 8 rental income. However, if we hypothetically assume that the market rent for a similar two-bedroom property is higher, say $1,400 per month, this would equate to an annual rental income of $16,800. Using the same median home value of $200,000, the implied gross yield in this case would be 8.4%, indicating a potentially higher return on investment compared to the Section 8 scenario.
The days on market (DOM) figure is not available, which makes it difficult to assess how quickly properties are turning over in this ZIP code. However, the 32.3% renter density suggests a steady, albeit not overwhelming, demand for rental housing. In such a scenario, the Section 8 program provides a guaranteed tenant and a stable income stream, albeit at a lower gross yield than what might be achieved through market-rate rentals.
To conclude, while the exact cap rate cannot be determined without the median home value, the gross yield comparison between the Section 8 program and potential market-rate rentals is clear. The Section 8 scenario offers a stable but lower gross yield of 6.36%, assuming a median home value of $200,000, whereas market-rate rentals could offer a higher gross yield of 8.4%, based on our hypothetical figures. Given the moderate renter density, the Section 8 option remains a viable choice for landlords seeking consistent occupancy and income.
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.