Location: Mercer 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 | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $235,239 | 0.43% | F |
| 3BR | $1,410 | $265,238 | 0.53% | F |
| 4BR | $1,580 | $347,890 | 0.45% | F |
U.S. Census Bureau data (2024)
New Wilmington, PA, located in ZIP code 16142, is a modest-sized community with a population of 5,522 residents. Only 22.3% of these residents are renters, indicating a primarily owner-occupied neighborhood. The median household income here is relatively robust at $84,205, which suggests a middle-class community with a good standard of living. Median home values stand at $260,239, reflecting a stable housing market where property values are reasonable but not low.
The economic landscape for rental properties in New Wilmington is shaped by the Federal Market Rent (FMR), set at $850 for fiscal year 2024. This figure contrasts with the actual market rent, which according to the Census ACS, averages $874 per month. This slight premium above the FMR indicates that landlords participating in the Section 8 program can expect to receive rents slightly below the market rate, though still competitive given the overall economic conditions of the area.
Considering the characteristics of ZIP 16142, it would be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the housing market and the proximity of the FMR to the actual market rent make this an attractive location. The low percentage of renters suggests that there is potential for growth in the rental sector without significant competition from existing rental properties. For value-add buyers, the opportunity to renovate and improve homes could lead to higher-than-average rental incomes, especially if targeting the slightly above average market rent of $874. Given the median income of $84,205, there is a sufficient demand for quality housing that could support such strategies.
In conclusion, ZIP 16142 offers a balanced environment for Section 8 investors. Whether focusing on passive income through voucher assistance or active management to increase property value, the fundamentals of New Wilmington's economy and housing market provide a solid foundation for investment success.
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.