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 | $870 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $328,327 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 18439 reveals a significant gap between the Fair Market Rent (FMR) set at $1,130 for fiscal year 2026 and the actual market rent reported at $738 based on Census ACS data. This discrepancy amounts to a difference of $392, or approximately 53.7%, indicating that the FMR is substantially higher than what the market currently supports.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage Section 8 vouchers to achieve better yields on their properties. The voucher program allows property owners to charge up to the FMR, which is significantly above the current market rate. This means that landlords can potentially increase their rental income by participating in the Section 8 program without having to worry about finding tenants willing to pay the higher rate.
ZIP 18439 has an 8.3% rental occupancy rate, a median home value of $330,035, and a median household income of $71,964. These figures provide context to the economic landscape of the area, suggesting that while homeownership is prevalent, those who do rent are likely to benefit from the lower market rents. However, for investors, the opportunity lies in the higher FMR allowed by the Section 8 program, which can help offset any perceived risks associated with renting to voucher tenants.
It's important to note that despite the potential for increased yields, there are costs associated with housing voucher tenants. These include administrative burdens such as dealing with the Housing Authority, maintaining compliance with HUD standards, and sometimes facing longer vacancy periods due to the limited number of vouchers available. Nonetheless, the financial incentive provided by the higher allowable rent under Section 8 makes it a viable strategy for maximizing returns in this ZIP code.
Investors should also be aware that the success of this strategy depends on the willingness of the local Housing Authority to issue vouchers and the overall demand for affordable housing in the area. Given the current economic conditions and the gap between FMR and market rent, it is a compelling proposition for those looking to optimize their investment portfolios.
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.