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 | $1,000 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $146,714 | 0.98% | C |
| 3BR | $1,890 | $171,933 | 1.1% | B |
| 4BR | $2,070 | $193,786 | 1.07% | B |
U.S. Census Bureau data (2024)
The ZIP code 18508 in Scranton, PA, presents a unique opportunity for real-estate investors looking to balance yield and stability. With a Fair Market Rent (FMR) of $1,080 for fiscal year 2024, compared to the market rent of $1,361, there is a clear potential for rental income above the FMR threshold. This indicates a higher yield possibility, especially when considering that the median home value in the area is $150,979.
On the stability axis, the data points towards a somewhat stable market. The percentage of renters at 45.6% suggests a moderate demand for rental properties, which is a positive sign for maintaining consistent cash flow. However, the lack of available data on the number of days on market (DOM) could indicate less volatility or simply that the information is not readily accessible. The median household income of $49,895 provides insight into the financial capacity of residents, which is relatively low but still sufficient for many to afford the average rent.
To classify this market, it leans more towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. While the potential for higher-than-FMR rents exists, the relatively low median income and moderate renter population suggest that rapid appreciation or flipping properties might not be as viable. Instead, focusing on long-term rentals that generate reliable cash flow seems more appropriate given these figures. The higher rent potential ($1,361) versus the FMR ($1,080) allows for competitive pricing without pushing beyond what most can afford, thus ensuring steady occupancy rates.
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.