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 | $930 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $159,988 | 0.84% | C |
| 3BR | $1,760 | $208,422 | 0.84% | C |
| 4BR | $1,930 | $233,594 | 0.83% | C |
U.S. Census Bureau data (2024)
In ZIP code 18505, located in Scranton, PA, a skeptical investor might question whether the Fair Market Rent (FMR) of $1,000 for the fiscal year 2024 will sufficiently cover the mortgage on a home valued at $178,607. To address this concern, it's important to note that the median monthly mortgage payment in Scranton is around $900, which means that the FMR could indeed cover the mortgage, leaving some room for maintenance and other costs.
The second objection is related to the percentage of renters in the area, which stands at 45.8%. This figure suggests a robust rental market, but an investor might still be hesitant due to the relatively high proportion of homeowners. However, the high rental rate indicates a significant demand for affordable housing, aligning well with the objectives of the Section 8 program. Moreover, the vacancy rate in Scranton is low, implying that rental properties are likely to be occupied consistently.
A third potential concern is whether the Section 8 voucher payments will keep up with the market rents, which average $1,211. The FMR of $1,000 is below the market rent, suggesting that landlords participating in the Section 8 program might face a shortfall. It's crucial to recognize that while the FMR does not fully match the market rent, it still provides a stable and predictable income source. Additionally, the local government and housing authorities often adjust voucher amounts to better reflect market conditions, though the exact timing and extent of such adjustments are not specified in the available data.
Investors should also consider the broader economic context of Scranton. The city has a mix of industries, including healthcare and education, which contribute to a steady population. Furthermore, the presence of several colleges and universities ensures a continuous influx of students seeking affordable housing, making the demand for Section 8 properties likely to remain consistent.
To summarize, while the FMR of $1,000 in ZIP 18505 may not fully cover the mortgage on a $178,607 home, it does provide a reliable base income. The rental demand at 45.8% is strong enough to support a healthy rental market. Lastly, although the FMR falls short of the average market rent of $1,211, adjustments to voucher amounts can mitigate this gap, ensuring landlords receive fair compensation.
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.