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 | $960 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,810 | $206,852 | 0.88% | C |
| 4BR | $1,990 | $261,547 | 0.76% | D |
| 5BR | $2,308 | $329,118 | 0.7% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 18509 might raise several concerns regarding the feasibility of participating in the Section 8 program. Here are some common objections and the data that addresses them.
Objection 1: Will the Fair Market Rent (FMR) of $1060 for ZIP 18509 in fiscal year 2024 cover the mortgage on a home valued at $199,716?
The FMR of $1060 is designed to reflect the average rent for a modest apartment in the area. To determine if this amount will cover the mortgage, we need to calculate the potential monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly payment on a $199,716 home would be approximately $950. This means that the FMR of $1060 would indeed cover the mortgage payment, leaving a small buffer for maintenance and other expenses.
Objection 2: Is there enough renter demand at 51.4%?
The 51.4% figure represents the percentage of households that rent rather than own their homes in ZIP 18509. While this number is below the national average, it still indicates a significant portion of the population relies on rental housing. The demand for affordable housing is strong, and Section 8 tenants have a track record of timely payments. However, the data does not provide a comprehensive picture of the local rental market dynamics, such as vacancy rates or competition from other landlords.
Objection 3: Will vouchers keep pace with market rents of $1,363?
The FMR set by HUD is typically lower than the actual market rents, which in ZIP 18509 stand at $1,363. Given that the FMR is $1060, landlords may be concerned about the difference between voucher amounts and market rents. It's important to note that the FMR is adjusted annually based on changes in the local rental market. If market rents continue to rise, it is likely that the FMR will also increase over time. However, the data does not guarantee that the FMR will always match or exceed the market rents. Landlords should consider the possibility of a gap between voucher payments and market rents and plan accordingly.
In summary, while the data shows that the FMR can cover the mortgage on a home valued at $199,716, there are uncertainties regarding the overall demand for rentals and the long-term alignment of voucher payments with rising market rents. These points highlight the importance of thorough due diligence and understanding the local rental market trends before investing in Section 8 properties in ZIP 18509.
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.