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 | $900 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $271,039 | 0.62% | D |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase properties in ZIP code 18419 for Section 8 investment can be structured around three key questions:
1) Does the Fair Market Rent (FMR) of $940 cover the debt service on a $242,434 property?
Yes: The FMR of $940 is sufficient to clear the debt service on a $242,434 property, assuming typical financing terms. This means that a landlord could expect to meet their mortgage obligations with the rental income generated from a Section 8 voucher.
No: If the FMR does not cover the debt service, then purchasing a property for Section 8 purposes would not be financially viable. Landlords need to ensure that the rental income meets or exceeds their mortgage payments to avoid financial strain.
2) Is the market rent of $981 above, at, or below the FMR?
Above: With a market rent of $981, which is higher than the FMR, landlords might consider whether they prefer to rent to market tenants or Section 8 participants. A higher market rent suggests that there is potential for greater income if the property is rented out at market rates.
At or Below: If the market rent is at or below the FMR, then the difference between market and Section 8 rents is minimal or non-existent. In this case, landlords may find it more advantageous to participate in the Section 8 program, as it provides stable, government-backed income.
3) Are 20.8% renters and N/A-day days on the market (DOM) indicative of enough demand?
It Depends: The 20.8% of renters in ZIP 18419 suggests a moderate level of demand for rental properties. However, without specific data on days on the market (DOM), it's difficult to assess the speed at which rental units are typically filled. If DOM is low, indicating quick turnover, this would support the idea that there is strong demand. Conversely, high DOM would suggest weaker demand and potentially longer vacancy periods, which could impact profitability.
In conclusion, if the FMR clears the debt service and the market rent is at or below the FMR, the answer leans towards yes for purchasing properties in ZIP 18419 for Section 8. However, the lack of DOM data leaves the final decision partially dependent on the local rental market dynamics. A thorough analysis of the local rental market, including DOM trends, would provide additional clarity.
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.