Location: McKean County, PA | Metro: Elk 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 | $880 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $120,878 | 0.84% | C |
| 3BR | $1,340 | $162,415 | 0.83% | C |
U.S. Census Bureau data (2024)
ZIP code 15870 encompasses the rural community of Wilcox, Pennsylvania, which boasts a modest population of 1,109 residents. Only 7.2% of these residents are renters, indicating a primarily owner-occupied area. The median household income in Wilcox stands at $63,750, reflecting a stable economic environment. Median home values are relatively low at $135,306, suggesting that the real estate market here is accessible and affordable.
The Federal Market Rent (FMR) for ZIP 15870 is set at $970 for the fiscal year 2026, which is significantly higher than the current market rent of $767 as reported by the Census Bureau's American Community Survey. This discrepancy highlights an opportunity for landlords who can leverage the higher voucher amounts to cover maintenance costs and profit margins.
Given the low rental occupancy rate and the disparity between the FMR and market rent, Wilcox, PA, is well-suited for hands-off voucher operators. The higher subsidy levels can offset the challenges of finding tenants willing to pay market rates. However, for hands-on value-add buyers, there is potential to improve properties and increase rents closer to the FMR level, thereby maximizing returns while still being attractive to voucher holders.
In summary, ZIP 15870 offers a niche market for Section 8 investors, balancing accessibility with the financial benefits of federal subsidies. Whether hands-off or hands-on, the economic landscape supports a viable investment strategy, particularly for those comfortable navigating the dynamics of a rural rental market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.