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 | $1,000 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $140,453 | 0.88% | C |
| 3BR | $1,610 | $180,361 | 0.89% | C |
| 4BR | $1,770 | $210,424 | 0.84% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 18634, located in Nanticoke, PA, within Luzerne County and the Scranton--Wilkes-Barre, PA MSA, reveals a favorable rental environment. The HUD Fair Market Rent (FMR) for FY 2024 is set at $920, which is significantly higher than the average market rent of $822 as reported by the Census ACS. This means that voucher tenants can cashflow at the FMR rate, providing a stable income stream for landlords.
To further understand the investment potential, consider the median home value in the area, which stands at $164,697. The rent-to-price ratio is calculated by dividing the annual rent by the home value. In this case, the annual rent based on the market rate would be approximately $9,864 ($822 x 12 months), leading to a rent-to-price ratio of about 6%. This ratio indicates that rental properties are relatively affordable compared to home values, suggesting a strong demand for rentals over homeownership.
The median days on market (DOM) and price-cut share are not applicable (N/A) in this scenario, as they pertain more to the buying market rather than the rental market. However, given the favorable cashflow dynamics and the relatively low market rent compared to the HUD FMR, the strongest investor angle here is cashflow. Landlords can expect steady, positive cashflow from Section 8 tenants in this ZIP code, making it an attractive investment opportunity.
In conclusion, the most compelling aspect for investors in ZIP 18634 is the potential for strong cashflow due to the difference between the HUD FMR and the actual market rent.
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.