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 | $1,090 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,890 | $340,454 | 0.56% | F |
| 4BR | $2,470 | $375,543 | 0.66% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,390 for ZIP 18453 in fiscal year 2026 will sufficiently cover the mortgage on a home priced at $331,512. To address this, let's consider the typical mortgage rate for the area. According to recent data, the average mortgage rate in Pennsylvania is currently around 5%. With this rate, a mortgage on a $331,512 home would result in monthly payments of approximately $1,750, assuming a 20% down payment. This suggests that the FMR alone would not be sufficient to cover the mortgage payment, leaving a shortfall of roughly $360 per month.
The investor could also be concerned about the level of rental demand in the area, given the 10.9% vacancy rate. While this rate indicates that there is some competition among rental properties, it also implies that there is a decent amount of demand. In ZIP 18453, rentals are primarily 3+ bedroom units, which typically rent for between $300-$499 per month, including utilities. This range is significantly lower than the FMR, suggesting that the demand for higher-priced units is strong enough to support rents closer to the FMR.
A final concern might be whether HUD vouchers will keep pace with market rents of $1,250. The data does not provide specific information regarding the voucher amounts for ZIP 18453. However, it is known that the voucher program aims to cover a significant portion of the rent but rarely matches the full market price. Given that the FMR is slightly higher than the average market rent, it is likely that vouchers will not fully cover the cost of renting a property at market rates, but they should still contribute substantially to the overall rent collected.
In conclusion, while the FMR of $1,390 may not fully cover the mortgage payment on a $331,512 home, there is evidence of a reasonable rental demand in the area. Additionally, although HUD vouchers may not keep pace with the full market rent of $1,250, they can still be a valuable source of income for landlords. It's important to note that these figures are based on current data and may change over time.
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.