Location: Wayne County, PA | Metro: Susquehanna County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 18465 provides a critical view into potential investment opportunities. To understand the gross yield, we must compare the Federal Market Rent (FMR) and the market rent figures.
The annualized 2BR FMR for ZIP 18465 is set at $1,180 for fiscal year 2026, based on metropolitan standards. Using this figure, the implied gross yield for a property valued at $238,852 would be approximately 5.36%. This calculation is derived from dividing the annual FMR by the median home value ($1,180 * 12 / $238,852).
In contrast, the market rent for a 2BR unit in ZIP 18465 is reported at $1,175, according to Census ACS data. Applying this market rent to the median home value yields an implied gross yield of about 5.34% ($1,175 * 12 / $238,852).
The difference between these two gross yields is minimal, standing at just 0.02 percentage points. However, considering the 18.7% renter density in ZIP 18465, the market rent scenario is more realistic. The low renter density suggests that there may be fewer tenants available to meet the higher FMR rates, making the actual market rent a better indicator of potential rental income.
Furthermore, the N/A-day DOM (days on market) indicates that properties are either selling quickly or data is insufficient to provide a clear picture. This could mean that the housing market is tight, leading to strong competition among landlords for tenants, which supports using the market rent figure for a more accurate gross-yield estimation.
In summary, while the FMR implies a slightly higher gross yield, the market rent offers a more grounded assessment of potential returns, aligning with the local rental market conditions. Investors should focus on the market rent of $1,175 when evaluating the viability of Section 8 investments in ZIP 18465.
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.