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 | $1,040 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $256,513 | 0.58% | F |
| 3BR | $1,880 | $370,392 | 0.51% | F |
| 4BR | $1,980 | $534,874 | 0.37% | F |
| 5BR | $2,297 | $580,319 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 18343, located in Mount Bethel, PA, reveals several key points for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1470 per month for FY 2024. In comparison, the Census ACS reports a market rent of $1,066 per month. This indicates that voucher tenants will generally cashflow at the FMR rate, providing a stable income source for property owners.
The median home value in this ZIP code is $369,887. Using the reported market rent of $1,066, we can calculate a rent-to-price ratio of approximately 0.34%. This low ratio suggests that the area is more favorable for buying rather than renting, as it implies a lower return on investment through rental income compared to the purchase price.
However, given the discrepancy between the HUD FMR and the actual market rent, landlords who accept Section 8 vouchers are likely to experience positive cash flow without needing to rely on premium units. The HUD FMR is significantly higher than the market rent, which means that landlords can potentially charge close to the FMR and still attract tenants.
Note that the median days on market (DOM) and the percentage of homes that required a price cut are not available for this analysis. However, the strong cashflow potential for voucher tenants outweighs the need for these metrics in determining the viability of the rental market.
The strongest investor angle in this market is cashflow, due to the substantial difference between the HUD FMR and the market rent, ensuring a steady and reliable income stream for those accepting Section 8 vouchers.
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.