Location: Scranton--Wilkes-Barre, PA | Metro: Scranton--Wilkes-Barre, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
The market analysis for Section 8 investors in ZIP code 18703, which falls under the Scranton--Wilkes-Barre County, Scranton--Wilkes-Barre, PA MSA metro area, reveals several key points that should be considered when evaluating potential investments.
The Fair Market Rent (FMR) set by HUD for this region in fiscal year 2024 is $1040. This figure represents the maximum amount landlords can charge for rental units covered under the Section 8 program. However, due to the lack of specific market rent data for ZIP 18703, it's challenging to directly compare the FMR against local market rates. Typically, market rents fluctuate based on supply and demand, location specifics, and property conditions, but without precise figures, we cannot determine if the voucher tenants will cashflow at FMR, marginally, or only with premium units.
The median home value in ZIP 18703 is also not available, which means deriving a concrete rent-to-price ratio is not possible. The rent-to-price ratio is a critical metric for understanding the relationship between rental income and home values, helping investors gauge whether renting or buying is more advantageous in the current market. Without this information, we must rely on other indicators to assess the investment landscape.
Similarly, the number of days on market (DOM) and the percentage of price reductions are not provided. These metrics are essential for understanding how quickly properties sell and the extent to which sellers might need to lower their asking prices, both of which can impact an investor's decision-making process regarding the purchase of rental properties.
In conclusion, given the limited data, the strongest angle for investors in ZIP 18703 appears to be stability. The fixed rental income provided by the Section 8 program can offer consistent cash flow, mitigating some of the risks associated with fluctuating market rents and uncertain housing market trends. Stability is crucial for those seeking reliable long-term returns, especially in areas where comprehensive market data is not readily accessible.
Data Sources: FMR data from HUD (2027).
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.