Section 8 Fair Market Rent (FMR) for ZIP 18705 - 2027

Location: Scranton--Wilkes-Barre, PA | Metro: Scranton--Wilkes-Barre, PA MSA

Investment Score for ZIP 18705

Monthly Rent (2BR)

$1,360

Median Price (2BR)

$165,014

1% Rule

0.82%

Annual Yield

9.89%

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: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,360	$165,014	0.82%	C
3BR	$1,780	$198,124	0.9%	C
4BR	$1,960	$240,667	0.81%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,624

Median Household Income

$59,344

Housing Units

7,096

Renter Percentage

39.2%

Occupancy Rate

89.3%

Renter Occupied

2,482

The ZIP code 18705, located in Wilkes-Barre, Pennsylvania, represents a market that is influenced by both federal housing programs and local rental dynamics. This area is characterized by a mix of homeowners and renters, with a significant portion of the population relying on rental properties.

The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $990, indicating the maximum amount HUD will pay for low-income housing rental assistance.
The actual market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,200, which is higher than the FMR, suggesting that the local rental market is more expensive than the federal benchmark.
The median home value in the area is $182,684, reflecting the typical cost of homeownership in Wilkes-Barre.
Renters make up 39.2% of the residential units in the area, highlighting a substantial demand for rental properties.
The median household income in ZIP 18705 is $59,344, providing insight into the financial capacity of residents to afford housing.

Investors looking to enter the Wilkes-Barre rental market should consider the gap between the FMR and market rent, which suggests potential for higher returns. However, the significant renter share indicates strong competition among landlords. The median home value and median income provide context for the overall economic health of the area, supporting the idea that while there is a robust rental market, it is also one where affordability plays a critical role in tenant decisions. Therefore, focusing on properties that offer good value and meet the needs of low to moderate-income families could be a strategic approach for success in this market.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.