Section 8 Fair Market Rent (FMR) for ZIP 18962 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,470
1 Bedroom	$1,590
2 Bedrooms	$1,900
3 Bedrooms	$2,270
4 Bedrooms	$2,500
5 Bedrooms	$2,900
6 Bedrooms	$3,248
7 Bedrooms	$3,508
8 Bedrooms	$3,683

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, the median home value for ZIP 18962 is $345,700. This figure provides a benchmark for evaluating potential investment opportunities in the area.

To derive the Section 8 cap-rate picture, we first annualize the Fair Market Rent (FMR) for a two-bedroom unit, which is set at $1680 per month for FY 2024. This translates to an annual rent of $20,160. Given that the market rent is currently not available, we must consider the implications of both scenarios.

• Section 8 scenario: With an annualized rent of $20,160 and a median home value of $345,700, the implied gross yield would be approximately 5.8%. This calculation assumes that the property's value aligns with the median and that the rental income is consistent with the FMR.
• Market rent scenario: Since the market rent is not available, we cannot provide a precise gross yield. However, it is generally understood that market rents tend to be higher than FMRs, which could result in a better gross yield for investors.

The 5.8% renter density in ZIP 18962 suggests that there is a relatively low proportion of residents who rely on Section 8 vouchers. This makes the market rent scenario more plausible for most properties, although some may still cater specifically to Section 8 tenants.

Without specific data on the Days on Market (DOM), it's challenging to assess how quickly properties are leased. However, the median home value indicates a stable housing market, which can support higher market rents. Investors should compare the Section 8 gross yield of 5.8% with the expected market yields to determine the best strategy for their portfolio.

In conclusion, while the Section 8 scenario offers a clear 5.8% gross yield, the potential for higher returns through market rents makes it a more attractive option for most landlords and small-portfolio investors. However, the decision ultimately depends on the investor's risk tolerance and the specific characteristics of the property in question.

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.