Location: Susquehanna County, PA | Metro: Scranton--Wilkes-Barre, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 18844 for Section 8 investment, they must evaluate several key factors to make an informed decision. The following decision tree will guide them through the process.
Step 1: Evaluate if the Fair Market Rent (FMR) covers debt service.
No: The FMR for ZIP 18844 in fiscal year 2024 is $990. This figure does not cover the debt service on a property with a N/A value, indicating that buying for Section 8 in this area would not be financially viable without additional income sources.
Step 2: Compare market rent to FMR.
Market rent is below FMR: The average market rent in ZIP 18844 is $1,005 according to the Census ACS. Since this amount is slightly above the FMR, landlords can expect a slight premium when renting to non-Section 8 tenants. However, this premium is minimal and does not significantly impact the decision to invest in Section 8 properties.
Step 3: Assess rental demand.
Yes: There is a 14.5% rate of renters in ZIP 18844. Additionally, the number of days on the market (DOM) is N/A, which suggests a stable demand for rental properties. However, the lack of specific DOM data means that landlords need to consider other local market indicators to confirm the stability of rental demand.
It depends: Given the limited data on DOM, landlords should investigate further into the local real estate market trends. If the DOM is consistently low, indicating quick property turnover, then there is likely enough demand to support Section 8 investments. Conversely, if the DOM is high, it could suggest a glut in the rental market, making it less favorable for Section 8 investments.
In summary, while the market rent in ZIP 18844 is marginally higher than the FMR, the primary gating factor is whether the FMR can cover the debt service on a property. Since the FMR of $990 does not meet this criterion, landlords should not purchase properties in this area solely for Section 8 investment. They must also assess the rental demand by investigating the DOM and other local market indicators to ensure that there is sufficient demand to justify the investment.
Data Sources: FMR data from HUD (2027). 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.