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 | $1,020 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,910 | $202,101 | 0.95% | C |
| 4BR | $2,100 | $231,554 | 0.91% | C |
| 5BR | $2,436 | $265,758 | 0.92% | C |
U.S. Census Bureau data (2024)
The ZIP code 18510 encompasses a neighborhood with a population of 14,332 residents, where nearly 59.6% are renters. This makes it a predominantly rental-oriented area, which is crucial for any investor considering properties in this region. The median income in this ZIP code stands at $53,235, indicating a middle-class community. The median home value is $184,460, reflecting a relatively affordable housing market.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 18510 as of the fiscal year 2024 is set at $1,050. This is notably lower than the market rent, measured by ZORI (Zillow Observed Rent Index), which is currently at $1,436. This gap suggests an opportunity for landlords who can manage properties efficiently to attract both voucher holders and market-rate tenants, potentially maximizing their investment's profitability.
For hands-off voucher operators, ZIP 18510 presents a mixed landscape. While the high percentage of renters indicates demand, the disparity between FMR and market rent means that relying solely on vouchers could limit the potential rental income. On the other hand, for hands-on value-add buyers who are willing to engage in property management and possibly renovate or improve units, there is a clear path to higher returns. These investors can leverage the existing rental demand while positioning themselves to capture a larger share of the market rent, thereby optimizing their investment strategy.
In summary, ZIP 18510 offers a balance between rental demand and affordability, making it suitable for both hands-off and hands-on investors. However, the latter may find more success by actively managing properties to bridge the gap between FMR and market rents, thus achieving better financial outcomes.
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.