Location: Pike County, PA | Metro: Pike 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 | $1,040 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $199,957 | 0.7% | D |
| 3BR | $1,940 | $353,636 | 0.55% | F |
U.S. Census Bureau data (2024)
In Shohola, PA (ZIP 18458), investing in properties that accept Section 8 vouchers presents several potential challenges. First, consider the tenant turnover rate. Market rents stand at $1,323, while the Fair Market Rent (FMR) for FY 2024 is $1,580. This gap suggests that tenants might be more likely to leave once their voucher period ends, seeking higher rent subsidies elsewhere. Second, vacancy exposure is a significant concern. With an average Days on Market (DOM) of N/A, it's difficult to predict how long a unit might remain vacant between tenants. This unpredictability can lead to periods of non-income generation, impacting cash flow. Third, deferred maintenance is a critical issue. The typical home value in the area is $306,363, yet the median income is only $96,635. This disparity indicates that many homeowners might struggle to keep up with maintenance costs, which could translate into higher repair expenses for landlords who inherit properties in less-than-perfect condition.
However, these risks must be weighed against the high renter density in the area. The 10.2% renter share is relatively high, suggesting strong demand for rental units among voucher holders. This high demand can stabilize occupancy rates and provide a steady stream of income once tenants are secured. Additionally, the higher FMR compared to market rents means that landlords can potentially attract tenants with vouchers, offsetting some of the financial risks associated with property maintenance and vacancy.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.