Location: Scranton--Wilkes-Barre, 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 | $940 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $267,734 | 0.66% | D |
| 4BR | $1,940 | $291,320 | 0.67% | D |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 18452 for Section 8 purposes must navigate several key factors to make an informed decision. The first step involves assessing whether the Fair Market Rent (FMR) can cover the debt service on a property. In ZIP 18452, the FMR for the fiscal year 2024 is set at $1,120. To determine if this clears the debt service on a property valued at $230,886, we must calculate the monthly mortgage payment. Assuming a typical 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment would be approximately $1,100. Therefore, the FMR does clear the debt service, leading to a preliminary answer of Yes.
The second question is whether the market rent of $1,027 (as per Census ACS data) is above, at, or below the FMR. In this case, the market rent is below the FMR, indicating that the property could potentially be rented out at the higher FMR rate to Section 8 tenants without leaving significant money on the table compared to market rates.
The third factor is demand. ZIP 18452 has a rental population of 27.9%, but the days on market (DOM) data is unavailable. Given the rental percentage alone, there is a reasonable amount of demand, though the lack of DOM data introduces some uncertainty. If the DOM is low, meaning properties are rented quickly, then demand is strong enough to support investment. However, if DOM is high, it suggests a glut in supply or difficulty in renting out units, which would weaken the investment case.
Decision Tree:
In conclusion, based on the available data, the decision to invest in ZIP 18452 for Section 8 purposes hinges on the DOM figure. With FMR covering debt service and being higher than market rent, the primary concern becomes the speed at which properties can be rented out, a factor critical for cash flow and investment viability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.