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 | $1,280 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,410 | $256,594 | 0.94% | C |
U.S. Census Bureau data (2024)
In ZIP code 18618, the economics of Section 8 housing can be analyzed using the SAFMR (Small Area Fair Market Rent) figures provided by the U.S. Department of Housing and Urban Development (HUD). For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $1,440. This figure represents the maximum amount that HUD will reimburse landlords participating in the Section 8 program.
The local market rent, as reported by the Census Bureau's American Community Survey (ACS), averages $1,381 for a similar two-bedroom unit. This indicates that the SAFMR is slightly above the average local market rent, which can be beneficial for landlords but does not necessarily guarantee higher profits due to the structure of the Section 8 program.
A Section 8 voucher works by covering the difference between the tenant's contribution and the total rent. The tenant is typically responsible for paying 30% of their adjusted income toward rent. In addition to the base rent, there are utility allowances that vary based on the size of the unit and the region. For a two-bedroom apartment in ZIP 18618, these allowances are factored into the overall reimbursement rate but do not increase it beyond the SAFMR cap.
To illustrate, if a tenant has an adjusted income of $1,000 per month, they would contribute $300 toward rent. The remaining balance, up to the SAFMR of $1,440, would be covered by the Section 8 program. However, since the local market rent is lower at $1,381, the actual reimbursement for a landlord would be calculated as follows:
The voucher would cover the difference between the tenant's contribution and the local market rent, up to the SAFMR limit. Therefore, if the landlord charges the local market rent of $1,381, the Section 8 program would pay $1,081 ($1,381 - $300). If the landlord charges the SAFMR rate of $1,440, the program would still only pay $1,140 ($1,440 - $300).
This structure means that landlords charging the local market rent of $1,381 would receive the full amount from both the tenant and the voucher program, with no reimbursement gap. Conversely, if the landlord charges the higher SAFMR rate of $1,440, there would be a reimbursement gap of $59 per month ($1,440 - $1,381).
In summary, landlords in ZIP 18618 should carefully consider the SAFMR and local market rent when setting their rental rates. Charging the local market rent ensures full reimbursement without any gaps, while setting rates closer to the SAFMR may result in a small surplus or a minor reimbursement shortfall.
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.