Location: Indiana County, PA | Metro: Indiana 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 | $740 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $160,218 | 0.63% | D |
| 3BR | $1,410 | $223,848 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 15765 in Penn Run, PA, reveals interesting insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $970 annually, while the Census ACS reports a market rent of $698 per month for the same type of unit.
To calculate the gross yield for the FMR scenario, we use the annualized figure of $970. This translates to a monthly rent of approximately $80.83 ($970 / 12 months). Given the median home value of $195,925, the implied gross yield based on FMR is about 4.8%. For the market rent scenario, using $698 per month directly, the gross yield is approximately 4.1%.
While both gross yields provide a baseline for investment potential, the FMR scenario is less likely to be realized in practice due to several factors. First, the renter density in Penn Run, PA, is only 12.6%, indicating that a significant portion of the population prefers homeownership over renting. Second, the N/A-day Days on Market (DOM) suggests either an extremely efficient rental market or incomplete data, making it difficult to gauge the actual demand and vacancy rates.
Given these conditions, the market rent of $698 per month seems more realistic for potential rental income. However, investors should also consider the possibility of achieving higher rents through property improvements or strategic location choices within the ZIP code. It's important to note that these gross yields do not account for operating expenses, taxes, or other costs, which would impact the net operating income (NOI).
In summary, while the FMR offers a slightly better gross yield at 4.8%, the market rent scenario provides a more practical outlook at 4.1%. Investors should focus on the latter as a starting point and adjust their expectations based on individual property characteristics and market dynamics.
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.