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 | $930 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $166,009 | 0.8% | C |
| 3BR | $1,740 | $189,942 | 0.92% | C |
| 4BR | $1,910 | $242,214 | 0.79% | D |
U.S. Census Bureau data (2024)
ZIP 18706, located in Wilkes-Barre, PA, within the Scranton--Wilkes-Barre, PA MSA metro area, serves best as a cash-flow anchor in a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) for FY 2024 and the local market rental rates. The FMR for ZIP 18706 is set at $910, while the average market rental rate is $1,250. This $340 difference per month provides a substantial cushion that ensures positive cash flow even when accounting for potential vacancies or maintenance costs.
The median home value in ZIP 18706 is $174,346, which is relatively low compared to many other areas. However, the primary focus for a Section 8 property should be on rental income stability rather than appreciation potential. In this case, the 0.1% price-cut share and N/A-day days on market indicate little to no volatility in the rental market, suggesting steady demand for rental properties without the need for frequent price adjustments.
Furthermore, the ZIP code has a 33.7% renter share, indicating a moderate level of renters in the area. While this could suggest some diversification benefits, the primary driver for including ZIP 18706 in a Section 8 portfolio is the guaranteed rental income through the Section 8 program, which is critical for maintaining consistent cash flow. The median income of $58,558 supports the viability of the Section 8 program, as it suggests that there is a sufficient number of residents who qualify for assistance.
In conclusion, ZIP 18706 is an ideal cash-flow anchor for a Section 8 portfolio due to the significant gap between the FMR and market rates, ensuring stable and predictable returns. Landlords and small-portfolio investors can rely on this ZIP code to provide a solid foundation for their investment strategies, focusing on long-term financial stability over short-term capital gains.
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.