Location: Susquehanna County, PA | Metro: Scranton--Wilkes-Barre, PA MSA
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 | $860 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $147,079 | 0.84% | C |
| 3BR | $1,610 | $181,595 | 0.89% | C |
| 4BR | $1,760 | $198,647 | 0.89% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 18407, Carbondale, PA, reveals a rental market where voucher tenants generally cashflow marginally at the HUD Fair Market Rent (FMR) of $960 for fiscal year 2024. The local market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,109, which is higher than the FMR. This means that landlords will need to manage costs effectively to maintain profitability with typical units.
To derive the rent-to-price ratio, we can use the median home value of $164,956. Dividing the median home value by the annual market rent ($1,109 x 12 months) gives us a ratio of approximately 12.4. This suggests that the area is relatively affordable for both renters and buyers, but the gap between FMR and market rent indicates a challenge for voucher holders seeking housing without financial assistance from landlords.
The dynamics of the rental versus buying market are further illustrated by the fact that there is no available data on the median days on market (DOM) and the percentage of homes that have undergone price cuts. However, these factors typically influence the overall housing market and can impact the decision-making process for potential investors. In this case, the lack of recent sales data makes it difficult to assess the current trends in home values and turnover rates.
The strongest angle for investors in Carbondale's ZIP 18407 is likely cashflow. While appreciation and stability are important considerations, the ability to generate positive cashflow through careful cost management and strategic unit selection is crucial given the disparity between HUD FMR and market rents. By focusing on premium units or those that offer cost-saving opportunities, investors can achieve better returns and sustain their investment portfolios over time.
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.