Location: Wayne County, PA | Metro: Wayne County, PA
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 | $1,000 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $317,369 | 0.43% | F |
| 3BR | $1,830 | $425,629 | 0.43% | F |
| 4BR | $2,250 | $572,071 | 0.39% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 18438 in Lakeville, PA, comes with several risks that landlords must consider. First, tenant turnover can be a significant issue when comparing the local market rent to the Federal Market Rent (FMR) of $1,340 for FY 2026 in the metro area. The lack of data on market rent makes it difficult to assess how competitive the FMR is, potentially leading to higher turnover if tenants seek cheaper alternatives.
Second, vacancy exposure is another concern due to the absence of days on market (DOM) data. This uncertainty can make it challenging to predict how quickly a property might fill up, especially in a scenario where tenants are moving frequently. High vacancy rates can lead to significant financial losses for landlords, as empty units mean lost rental income.
Third, deferred maintenance is a risk given the typical home value of $436,916 and the median income of $60,972. With home values significantly higher than median incomes, landlords may struggle to keep up with necessary repairs and improvements without relying heavily on tenant contributions, which are often limited under Section 8 programs.
However, these risks must be weighed against the high renter density in Lakeville, PA. The 10.2% renter share indicates a substantial portion of the population relies on rental housing, which typically translates into higher demand for Section 8 vouchers. This demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure, as there is likely to be a steady pool of potential tenants who qualify for the program.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 18438 is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density provides a buffer that can help stabilize occupancy rates and ensure a consistent stream of qualified applicants.
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.