Section 8 Fair Market Rent (FMR) for ZIP 18503 - 2027

Location: Scranton--Wilkes-Barre, PA | Metro: Scranton--Wilkes-Barre, PA MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,070
1 Bedroom	$1,240
2 Bedrooms	$1,530
3 Bedrooms	$2,000
4 Bedrooms	$2,200
5 Bedrooms	$2,552
6 Bedrooms	$2,858
7 Bedrooms	$3,087
8 Bedrooms	$3,241

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,629

Median Household Income

$36,107

Housing Units

1,175

Renter Percentage

97.6%

Occupancy Rate

73.3%

Renter Occupied

840

When considering whether to purchase properties in ZIP code 18503 for Section 8 investment, follow these steps:

1) Does the Fair Market Rent (FMR) of $1,010 cover the debt service on a property valued at $160,733?

No. The FMR of $1,010 does not sufficiently cover the debt service for a property costing $160,733. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the property value, it's unlikely that $1,010 per month would be enough to meet these obligations comfortably.

2) Is the market rent of $1,450 (ZORI) above, at, or below the FMR?

Above. The ZORI, which stands for Zillow's Estimated Rental Income, is set at $1,450 per month, significantly higher than the FMR of $1,010. This suggests that there is potential to earn more than the FMR if you can secure non-Section 8 tenants.

3) Are 97.6% renters combined with N/A-day Days on Market (DOM) sufficient to ensure demand?

It Depends. With 97.6% of residents being renters, there is clearly a high demand for rental properties in ZIP 18503. However, the lack of specific days on market (DOM) data means we cannot accurately assess how quickly properties are rented out. High renter percentages indicate strong demand, but without knowing the DOM, it's difficult to gauge the competition and vacancy risks.

If the FMR does not cover debt service, you must consider alternative income sources or lower your acquisition price to ensure profitability. The market rent being above the FMR is positive, indicating that you could potentially attract non-Section 8 tenants willing to pay more. However, the high percentage of renters and unclear DOM data suggest that while demand exists, you need to evaluate the competition and the ease of filling vacancies before making a decision.

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.