Location: Scranton--Wilkes-Barre, PA | Metro: Scranton--Wilkes-Barre, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
U.S. Census Bureau data (2024)
The ZIP code 18420 presents several challenges for landlords considering Section 8 investments. Tenant turnover could be a significant issue due to the disparity between market rent and the Fair Market Rent (FMR) of $940 for fiscal year 2024. This gap may discourage tenants from staying long-term, leading to frequent vacancies and increased management costs.
Vacancy exposure is another concern, especially since the days on market (DOM) for rental properties in this area is not available. Without this data, it's difficult to predict how quickly a property might be rented out after a vacancy occurs. This uncertainty can lead to periods where the landlord does not receive any rental income, impacting cash flow negatively.
The deferred maintenance exposure is also notable. With a median income of $73,333 and no specific data on the typical home value, there's potential for older properties in the area to require substantial repairs and updates. This could result in higher-than-expected maintenance costs for landlords, particularly if they inherit a property that has been neglected.
However, these risks are somewhat mitigated by the high renter share in ZIP 18420, which stands at 50.0%. High renter density often correlates with a higher demand for rental housing, including those using Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of tenants.
In conclusion, despite the potential pitfalls of tenant turnover, vacancy exposure, and deferred maintenance, the strong renter market suggests a moderate risk for a first-time Section 8 landlord in ZIP 18420.
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.