Location: Sullivan County, PA | Metro: Williamsport, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 18619 centers around the disparity between the Fair Market Rent (FMR) set at $1090 for fiscal year 2024 and the actual market rent, which stands at $1083 according to Census ACS data. This creates a gap of $7, or approximately 0.65%, where the FMR exceeds the market rent.
This scenario makes ZIP 18619 a compelling opportunity for landlords and small-portfolio investors interested in maximizing their rental yields. The FMR being higher than the market rent means that voucher tenants can pay a rate that is slightly above what non-voucher tenants might offer, thereby increasing profitability for property owners. Specifically, landlords can receive an additional $7 per month compared to the average market rent, which translates into a higher cash flow on a monthly basis.
In ZIP 18619, only 17.7% of the population are renters, indicating a relatively low demand for rental properties. Additionally, the median home value is $154,271, suggesting that homeownership is accessible to many residents. With a median household income of $66,250, most families can afford market rents without assistance, but the presence of voucher tenants can still provide a financial advantage to landlords.
The higher FMR also ensures that landlords are protected against potential losses due to the economic instability faced by some tenants. Voucher programs guarantee a steady and reliable source of income, as the government subsidizes the difference between the market rent and what the tenant can afford. This stability is particularly beneficial in areas with a smaller rental market share, such as ZIP 18619.
However, accepting Section 8 vouchers does come with certain administrative responsibilities. Landlords must ensure compliance with HUD standards, which include maintaining the property in good condition and undergoing regular inspections. These obligations are balanced by the increased rental income, making it a strategic decision for those willing to manage the administrative tasks.
To summarize, the $7 gap between the FMR and market rent in ZIP 18619 presents a yield play for landlords and small-portfolio investors. It allows them to capitalize on slightly higher rents paid by voucher tenants while operating in a market with limited competition and ensuring a stable income stream.
Data Sources: FMR data from HUD (2027). 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.