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 | $880 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $190,034 | 0.66% | D |
| 3BR | $1,650 | $250,897 | 0.66% | D |
| 4BR | $1,810 | $276,780 | 0.65% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 18512, located in Scranton, PA, stands at $64,708. This figure is crucial when considering the affordability of housing for local residents. The market rate for rent, according to the Census ACS, is $911 per month. For a household earning the median income, this equates to approximately 17.5% of their monthly income going towards rent, which is manageable but tight.
However, the Federal Market Rent (FMR) standard for the zip code in fiscal year 2024 is set at $1000. This means that even if a household qualifies for a Section 8 voucher, they might still find it challenging to cover the difference between the voucher amount and the actual rent cost, especially in areas where rents exceed the FMR. The gap between the market rate ($911) and the voucher payment standard ($1000) suggests that landlords may need to adjust their expectations if they wish to participate in the voucher program.
With 34.4% of the population being renters and a total population of 12,986, there is a significant demand for rental properties in ZIP 18512. However, the affordability gap could lead to increased competition among landlords for tenants who can pay the full market rate without relying on vouchers. Landlords must consider the trade-offs between accepting cash-paying tenants who might be less likely to qualify for Section 8 and those who do, potentially requiring landlords to lower their rates to align with the voucher limits.
The takeaway for landlords is clear: understanding the dynamics of the local rental market and the financial capabilities of potential tenants is essential. While cash-paying tenants offer immediate stability, participating in the Section 8 program can provide a steady stream of income and access to a broader pool of renters. Landlords should carefully weigh these factors and possibly diversify their tenant mix to balance risk and reward.
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.