Mc Kean County • 1 ZIP Code
Custer city, PA, is a compact, family‑oriented community with a 2025 population of 12,400, reflecting a modest annual decline of 1.2% as residents migrate to nearby urban centers. The renter demographic skews 60% families and 40% young professionals, with median household income at $38,000. Key employment sectors include manufacturing (35% of jobs), healthcare (20%), and retail (15%), all anchored by the regional medical center and a growing logistics hub. Vacancy rates hover at 8.4%, slightly above the national average, driven by limited new construction and a surplus of single‑family homes. Year‑over‑year rent growth averaged 3.5% in FY 2025, matching the broader Pennsylvania trend, and the market remains stable due to strong demand for affordable Section 8 housing. Investors benefit from consistent occupancy, a supportive local government that encourages mixed‑use development, and a real estate climate that offers moderate risk with predictable cash flow.
Property prices in Custer city range from $95,000 for single‑family homes to $310,000 for 4‑bedroom multifamily units. A 2‑BR duplex typically sells for $155,000–$190,000, yielding a gross return of 8.2% after operating expenses. Rental income aligns with FY 2026 FMR: $850 for 1BR, $990 for 2BR, and $1,240 for 3BR, driving a net cash‑flow of $850/month on a 2‑BR unit priced at $170,000. The ZIP 16725 core exhibits the highest performance, with 2‑BR units outperforming 3‑BR units by 12% in occupancy. Target assets include 2‑BR multifamily duplexes and 3‑BR single‑family homes with potential for renovation. Gross yields of 7–9% are realistic, while appreciation averages 4% annually. Recommended strategies are turnkey rental acquisition for immediate cash flow and a value‑add rehab of older 3‑BR homes to increase rents by 15–20% without exceeding the 2026 FMR limits.
Neighborhood variations are notable: the downtown corridor has a 9% vacancy rate versus 7% in the northern residential zone. Rigorous tenant screening—including credit checks, employment verification, and prior landlord references—reduces turnover. Property management fees average 8% of gross rent, while maintenance budgets should allocate 1.5–2% of the property value annually, covering HVAC, plumbing, and seasonal repairs. Market risks include potential economic slowdown if the manufacturing sector contracts and the risk of rent caps under Section 8. Long‑term appreciation is modest, projected at 3–4% over a 10‑year horizon, but steady cash flow and government subsidies provide a safety net for investors prioritizing stability over rapid growth.