Location: Wayne 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 | $970 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $245,437 | 0.54% | F |
| 3BR | $1,710 | $308,070 | 0.56% | F |
| 4BR | $2,140 | $365,914 | 0.58% | F |
| 5BR | $2,482 | $433,051 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 18436, located in Lake Ariel, Pennsylvania, presents an interesting balance between yield and stability. On the yield axis, the Fair Market Rent (FMR) for 2024 stands at $1,220, which is notably higher than the current market rent of $1,089. This suggests that there is potential for higher rental income if landlords can secure Section 8 vouchers for their properties. The median home value in the area is $303,516, indicating a moderate investment cost relative to the rental income potential.
Moving to the stability axis, the percentage of renters in the area is relatively low at 15.0%. This figure implies a smaller pool of potential tenants, which could affect the demand for rental properties. Additionally, the average days on market (DOM) for rentals is 30 days, suggesting a moderate turnaround time for finding new tenants. The median household income of $69,498 provides some insight into the economic health of the area, but it does not directly correlate with the likelihood of timely rent payments.
Based on these figures, ZIP 18436 appears to be a steady-cashflow zone. The higher FMR compared to market rent indicates that landlords could benefit from Section 8 vouchers, thereby increasing their rental income. However, the low percentage of renters and moderate DOM suggest that while the market offers decent yields, it lacks the high tenant turnover characteristic of a flip-style market. The combination of these factors points towards a stable, albeit not highly volatile, rental environment where landlords can expect consistent cash flow without the risks associated with high tenant turnover.
To summarize, the key figures driving this classification are the FMR of $1,220, the market rent of $1,089, and the 15.0% renters ratio. These metrics indicate a moderate yield opportunity with a level of stability that favors long-term investments over quick flips.
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.