Location: Lawrence County, PA | Metro: Lawrence County, PA HUD Metro FMR Area
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 | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $156,414 | 0.7% | D |
| 3BR | $1,520 | $209,995 | 0.72% | D |
| 4BR | $1,690 | $261,226 | 0.65% | D |
U.S. Census Bureau data (2024)
To integrate ZIP 16116, located in Edinburg, PA, into a Section 8 portfolio strategy, it's essential to understand its unique characteristics and how they align with investment goals. Edinburg falls under the Lawrence County, PA HUD Metro FMR Area, where the Fair Market Rent (FMR) for FY 2026 is set at $1,010 for a metro area. This figure is significantly higher than the local market rent of $688, creating a substantial spread that can serve as a cash-flow anchor.
The cash-flow anchor designation is justified by the $322 difference between the FMR and the market rent. Landlords who participate in the Section 8 program for properties in ZIP 16116 will benefit from this gap, ensuring a steady and predictable income stream above the local market rate. This is particularly advantageous given the median home value in the area is $183,144, indicating a relatively stable housing market with fewer risks of rapid price fluctuations.
While the ZIP code offers an opportunity for a cash-flow anchor, it does not present significant potential as an appreciation play. The data does not provide a percentage for price-cut shares or days on the market (DOM), suggesting that there isn't enough evidence to support aggressive growth strategies based on property value increases. Instead, the focus should be on the reliable rental income provided by the Section 8 program.
ZIP 16116 can also act as a diversifier within a larger portfolio. With a 7.2% renter share, the area has a modest but steady demand for rental properties, which can help balance out a portfolio that might otherwise be heavily weighted towards owner-occupied homes. Additionally, the median income of $69,559 indicates a middle-class community, which can ensure a stable tenant base with a lower risk of default on rent payments.
In conclusion, ZIP 16116 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The significant spread between the FMR and market rent provides a reliable source of income, while the median home value suggests stability in the housing market. The area's characteristics make it less suitable for appreciation plays but still valuable as a diversifier due to its modest renter share and middle-income population.
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.