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 | $980 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $182,979 | 0.77% | D |
| 3BR | $1,850 | $213,222 | 0.87% | C |
| 4BR | $2,030 | $247,856 | 0.82% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 18640, located in Pittston, Pennsylvania, within the Scranton--Wilkes-Barre metropolitan area, reveals several key points regarding rental mathematics, property acquisition affordability, and tenant demand.
The rent math does not favor landlords. The Fair Market Rent (FMR) set at $1110 for fiscal year 2024 is higher than the market rent reported by the Census ACS at $959. This discrepancy suggests that landlords might struggle to find tenants willing to pay the higher FMR rate, leading to potential vacancies or reduced profitability.
Acquisition appears to be affordable, with a median home value of $201,737. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) indicates a stable but possibly less dynamic housing market. Landlords should expect moderate competition when acquiring properties, but the median home value remains reasonable for investment purposes.
Tenant demand is strong, supported by a population of 16,581, with 41.5% of residents being renters. This high percentage of renters signals a robust market for rental properties, which can help ensure steady occupancy rates and mitigate risks associated with finding tenants.
In conclusion, while the rent math in ZIP 18640 may not be optimal due to the disparity between FMR and market rent, the affordability of property acquisition and the significant tenant demand make it a viable investment location. Landlords should carefully consider setting rents closer to the market rate to maximize occupancy and profitability. Despite the challenges, the high renter share ensures a consistent pool of potential tenants, providing a solid foundation for long-term investment success.
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.