Location: Scranton--Wilkes-Barre, PA | Metro: Scranton--Wilkes-Barre, PA MSA
| 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 |
U.S. Census Bureau data (2024)
The median home value in ZIP 18440 is $1,093,800. Given the annualized 2BR Fair Market Rent (FMR) for FY 2024 is $1040, we can calculate the implied gross yield for a Section 8 property. With a median home value of $1,093,800, the gross yield would be approximately 0.095%, which is extremely low and not practical for most investors.
To provide a more realistic scenario, we need the market rent for a 2BR unit in ZIP 18440. Unfortunately, the data is currently not available. However, considering the 16.7% renter density, it's likely that the market rent for a 2BR unit would be higher than the FMR, potentially offering a better gross yield.
The lack of data on market rent makes it difficult to provide a precise comparison. Nevertheless, the extremely low gross yield based on the FMR suggests that relying solely on Section 8 vouchers may not be financially viable for most properties in this area. Investors should consider the broader rental market dynamics and possibly look at other sources of rental income to achieve a more reasonable return.
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.