Section 8 Fair Market Rent (FMR) for ZIP 18702 - 2027

Investment Score for ZIP 18702

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$950
1 Bedroom	$1,100
2 Bedrooms	$1,360
3 Bedrooms	$1,780
4 Bedrooms	$1,960
5 Bedrooms	$2,274
6 Bedrooms	$2,547
7 Bedrooms	$2,751
8 Bedrooms	$2,889

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,360	$140,750	0.97%	C
3BR	$1,780	$176,847	1.01%	B
4BR	$1,960	$228,728	0.86%	C
5BR	$2,274	$219,641	1.04%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 18702 (Wilkes-Barre, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 18702 in Wilkes-Barre, PA, as of 2026, is set at $1230 for a two-bedroom unit. This figure represents 26.2% of the median household income of $56,378, indicating that it is within a reasonable range for low-income families to afford. However, the actual rental prices in the area can be significantly higher. According to Zillow, the median price for a two-bedroom home in this ZIP code is $132,098, which translates to a monthly rent of approximately $1099 if we assume a 1% monthly rental rate. This means that the actual rental costs are already above the FMR for a two-bedroom unit, creating a challenge for Section 8 voucher holders who are constrained by the maximum allowable rent under their vouchers. For instance, a three-bedroom unit has an FMR of $1600, but if the actual rental prices follow the same pattern as the two-bedroom units, they could easily exceed this amount. This discrepancy between FMR and actual rents poses a significant barrier for voucher holders seeking suitable housing, as landlords may be unwilling to accept lower rents than what the market demands. #### Affordability & Renter Profile ZIP code 18702 has a population of 41,970, with 40.5% of residents being renters. The occupancy rate stands at 86.2%, suggesting that there is a relatively high demand for rental properties in the area. Given that the median household income is $56,378, many residents likely fall into the low to moderate-income category, making them prime candidates for Section 8 vouchers. However, the affordability of housing is a critical issue. With the Zillow median price for a two-bedroom unit being $132,098, the price-to-FMR ratio is 8.9x, which is quite high. This implies that the cost of owning a property is much higher than the cost of renting it based on FMR guidelines. For renters, this means that finding affordable housing can be difficult, especially when the actual rents often exceed the FMR. The tight market conditions indicate that there is a strong competition among renters, particularly those relying on Section 8 vouchers. Landlords might prefer tenants who can pay market rates rather than those limited by voucher amounts, leading to a potential shortage of available units for voucher holders. #### Investor Angle From an investor's perspective, the ZIP code 18702 presents both opportunities and challenges. The FMR guidelines suggest that a two-bedroom unit should rent for $1230 per month. However, given the high price-to-FMR ratio of 8.9x, it is likely that actual rental prices are higher. If we consider the Zillow median price of $132,098, the implied rental rate would be around $1099 per month for a two-bedroom unit. This is still below the FMR, indicating that investors who can acquire properties at or near the Zillow median price could potentially achieve positive cash flow by renting out these units at FMR rates. However, the investment grade in this ZIP code is somewhat mixed. While there is a high demand for rental properties, the affordability issues and the fact that actual rents often exceed FMR could make it challenging to find long-term tenants who rely solely on Section 8 vouchers. Investors need to carefully balance the potential for higher rental income against the risk of vacancy due to the limited pool of eligible voucher holders. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should aim to acquire properties where the rental income is below the FMR. For example, a two-bedroom unit renting for $1099 per month would be attractive to Section 8 voucher holders while still providing a reasonable return on investment. This strategy leverages the high demand for affordable housing without overextending the budget of voucher recipients. 2. **Consider Diversifying Tenant Mix**: Given the tight market and the high price-to-FMR ratio, investors might want to diversify their tenant mix. By offering some units at market rates and others at FMR, landlords can cater to a broader range of renters, including those who do not rely on vouchers. This approach can help mitigate the risk of vacancies and ensure a steady stream of rental income. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide valuable insights into the availability of vouchers and the needs of the community. This can help investors understand the dynamics of the Section 8 program and potentially secure more stable tenancies by aligning with the housing authority's goals. #### Bottom Line For Section 8-focused investors, the ZIP code 18702 presents a mixed picture. On one hand, there is a significant demand for rental properties, and the FMR guidelines provide a clear framework for affordable housing. On the other hand, the high price-to-FMR ratio and the tight market conditions pose challenges in securing long-term tenancies with voucher holders. Given these factors, the recommendation for investors is to **Hold**. While there is potential for positive cash flow by renting units at or slightly below FMR, the risks associated with the tight market and the limited pool of voucher holders mean that aggressive buying might not be the best strategy. Instead, investors should focus on maintaining and improving existing properties to meet the needs of both voucher holders and other renters, ensuring a balanced and sustainable portfolio.

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.