Location: Mercer County, PA | Metro: Mercer County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The ZIP code 16114 is characterized by a small, tight-knit community with a total population of 579 individuals. Only 10.9% of the residents are renters, indicating a predominantly owner-occupied area. The median household income stands at $69,500, reflecting a middle-class demographic. The median home value in the area is $180,665, which suggests that homeownership is relatively affordable compared to national averages.
Turning to the rental economics, the Fair Market Rent (FMR) for ZIP 16114, as set by the Department of Housing and Urban Development (HUD) for fiscal year 2024, is $950. However, the actual market rent, according to the Census Bureau's American Community Survey (ACS), is significantly lower at $482 per month. This substantial gap between the FMR and the market rent presents a unique opportunity for landlords and small-portfolio investors.
Given these figures, ZIP 16114 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the HUD voucher program can provide a steady stream of tenants who pay the higher FMR rate, effectively subsidizing rents above the local market rate. This scenario allows landlords to benefit from a guaranteed income without the need for active property management.
On the other hand, for hands-on value-add buyers, the potential exists to renovate properties and increase their market appeal, thereby justifying higher rents closer to the FMR. With a median income of $69,500 and a median home value of $180,665, there is a reasonable expectation that the local market could support such improvements, especially if targeting the growing segment of renters willing to pay more for quality housing.
In conclusion, ZIP 16114 offers a balanced investment opportunity. Its low renter percentage and modest market rent make it an attractive location for those looking to leverage the HUD voucher system. Simultaneously, the economic indicators suggest that there is room for value enhancement through strategic property upgrades, catering to a demographic capable of paying closer to the FMR.
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.