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 | $950 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $195,323 | 0.63% | D |
| 3BR | $1,580 | $294,005 | 0.54% | F |
| 4BR | $1,720 | $459,066 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 16123, which includes Fombell, PA, in the Beaver County and Lawrence County, PA HUD Metro FMR Area, presents a clear opportunity for cashflow generation for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1210 for fiscal year 2024. This is notably higher than the market rent of $1146 reported by the Census ACS data, indicating that voucher tenants can provide positive cashflow when renting at the HUD FMR rate.
To further analyze the investment potential, consider the median home value in the area, which stands at $271,093. Using the HUD FMR of $1210, we can calculate a rent-to-price ratio of approximately 0.45%, suggesting that properties in this area are undervalued relative to their rental income potential. This ratio is favorable for buy-and-hold strategies, as it implies strong cash-on-cash returns for property owners.
However, due to the lack of specific data on the median Days on Market (DOM) and the percentage of homes that experienced price cuts, it's challenging to make precise predictions about the short-term volatility of the market. These metrics would be crucial in understanding how quickly properties sell and whether there is a need to adjust prices to attract buyers, which could impact long-term investment strategies.
In conclusion, the strongest angle for investors in this market is cashflow. Given the discrepancy between the HUD FMR and the actual market rent, landlords can expect consistent positive cashflow from voucher tenants without needing to rely on premium units. This makes ZIP 16123 an attractive option for those looking to generate reliable rental income.
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.