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 | $860 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $189,109 | 0.66% | D |
| 3BR | $1,620 | $255,602 | 0.63% | D |
| 4BR | $1,780 | $297,619 | 0.6% | F |
U.S. Census Bureau data (2024)
Old Forge, PA, located in ZIP code 18518, is a modest-sized community with a total population of 8,573. The neighborhood has a relatively low percentage of renters at 30.0%, indicating a primarily owner-occupied area. However, the median income of $71,812 suggests that residents have a comfortable financial standing, which can be beneficial for both landlords and small-portfolio investors looking to attract stable tenants. The median home value in the area is $209,716, reflecting a middle-class neighborhood where property values are reasonable but not excessively high.
Moving into the economic landscape of rental properties, the Fair Market Rent (FMR) for ZIP 18518 in fiscal year 2024 is set at $1,030. This figure is notably higher than the reported market rent of $859, based on Census ACS data. This gap indicates an opportunity for landlords who can leverage the higher FMR rates associated with Section 8 vouchers to command rents above the current market level. For hands-off operators, this means a potentially easier path to attracting tenants through the voucher program without needing to actively manage property improvements or amenities.
The question then becomes whether Old Forge, PA, is better suited for a hands-off voucher operator or a hands-on value-add buyer. Given the discrepancy between the FMR and the market rent, a hands-off operator could find success by simply meeting the basic requirements of the Section 8 program and relying on the higher voucher rates to cover their costs and provide a steady income stream. On the other hand, a value-add buyer might see potential in improving properties to appeal to a broader range of tenants, leveraging the higher FMR to justify increased rents and recoup investment costs.
In summary, Old Forge, PA, offers a balanced environment for Section 8 investments, with a mix of affordability and comfort that can cater to both hands-off and hands-on strategies. The key lies in understanding the local market dynamics and choosing a strategy that aligns with the investor's goals and resources.
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.