Location: Wayne County, PA | Metro: Susquehanna County, PA
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 | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $201,791 | 0.66% | D |
U.S. Census Bureau data (2024)
In evaluating whether to invest in ZIP code 18847 for Section 8 properties, follow this decision tree:
Step 1: Determine if the Fair Market Rent (FMR) of $1,020 can cover the debt service on a property valued at $177,647. For most lenders, a debt service coverage ratio (DSCR) of 1.2x is considered acceptable. To achieve this, the annual income from the property must be at least 1.2 times the annual debt service. With an FMR of $1,020, the annual income would be $12,240. This means the total annual debt service should not exceed $10,200 to maintain a DSCR of 1.2x. If your debt service is lower than this figure, the answer is Yes. Otherwise, it is No.
Step 2: Assess the relationship between the FMR and the market rent. The market rent for ZIP 18847 is $855, which is below the FMR of $1,020. This indicates that you could potentially charge the higher FMR rate, making it a favorable situation. However, if the market rent were at or above the FMR, the answer would be It Depends, as charging the FMR might not be feasible.
Step 3: Evaluate the rental demand. In ZIP 18847, 24.8% of residents are renters. The Days on Market (DOM) is listed as N/A, which means there's insufficient data to assess how quickly rentals are turning over. Despite this lack of data, the 24.8% rental rate suggests a moderate demand for rental properties. Given the lack of DOM data, the answer is It Depends. However, if the DOM were low, indicating quick turnover, then the answer would lean towards Yes. Conversely, if the DOM were high, the answer would be No.
To summarize, the investment decision in ZIP 18847 hinges on the following:
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.