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 | $1,090 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,060 | $300,349 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 18507 represents a suburban neighborhood situated in Pennsylvania. With a total population of 5,443, it's a community where 35.2% of residents are renters, indicating a moderate demand for rental properties. The median household income in this area stands at $75,395, which places it above the national average, suggesting a relatively affluent demographic. The median home value is $237,745, reflecting a stable housing market.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 18507 for fiscal year 2024 is set at $1,020. In contrast, the actual market rent, as reported by the Census Bureau's American Community Survey (ACS), averages $1,346. This discrepancy between the FMR and market rent indicates that landlords participating in the Section 8 program could face a shortfall of $326 per unit, per month, if they rely solely on voucher payments to cover their rental costs.
Given these economic conditions, ZIP 18507 might not be ideal for hands-off voucher operators who seek to minimize management efforts and risks. The gap between the FMR and market rent suggests that such operators would likely need to subsidize the difference or risk losing tenants to higher-paying options. However, for hands-on value-add buyers willing to renovate and manage properties, this ZIP code presents opportunities. By targeting lower-cost homes and improving them to attract Section 8 tenants while still maintaining a competitive edge against non-voucher rentals, these investors can create a sustainable business model.
In summary, ZIP 18507 offers a mix of challenges and opportunities for Section 8 investors. While the FMR falls below the market rent, strategic management and renovations can turn this into a profitable venture for those ready to engage actively in property management.
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.