Location: Lawrence County, PA | Metro: Pittsburgh, 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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $870 | $86,919 | 1% | B |
| 2BR | $1,110 | $132,649 | 0.84% | C |
| 3BR | $1,500 | $180,165 | 0.83% | C |
| 4BR | $1,650 | $212,673 | 0.78% | D |
| 5BR | $1,914 | $201,025 | 0.95% | C |
U.S. Census Bureau data (2024)
ZIP code 16117 is located in Ellwood City, Pennsylvania, and represents a modest suburban community with a total population of 15,786. Approximately 22.7% of the residents are renters, indicating a neighborhood where homeownership is prevalent but rental properties still play a significant role. The median household income in this area stands at $73,045, which suggests a middle-class community capable of supporting various types of housing. Median home values are reported at $151,408, reflecting an affordable residential market.
The economic landscape for rentals in ZIP 16117 is particularly interesting when considering the Federal Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $960, while the Census ACS reports the market rent at $893. This means that landlords participating in the Section 8 program can expect to receive slightly higher rents compared to the market average, providing a financial cushion against potential maintenance costs and vacancy rates.
Given these conditions, ZIP 16117 would suit both hands-off voucher operators and hands-on value-add buyers. For those seeking a low-maintenance investment strategy, the consistent demand for rental units and the support of Section 8 vouchers ensures steady cash flow without the need for extensive property management. On the other hand, for investors interested in actively managing their assets, there is room to enhance property values through renovations or improvements, taking advantage of the slightly elevated FMR to cover additional expenses and generate higher returns.
In summary, ZIP 16117 offers a balanced environment for Section 8 investments, characterized by a stable middle-income demographic and a favorable rent differential between the FMR and market rates. Whether an investor prefers a passive approach or seeks opportunities for active management, this neighborhood presents viable options for achieving financial goals within the realm of affordable housing.
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.