Location: Mercer County, PA | Metro: Mercer County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 16145 in the Mercer County, PA metro area reveals several key points for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 16145 is set at $850 for fiscal year 2024, while the Census ACS reports the market rent at $767. This indicates that landlords can expect to charge approximately $83 above the current market rate if they align their rents with the FMR guidelines. However, this also suggests that the rent may be slightly inflated compared to what the market currently supports, which could impact occupancy rates.
The second point of interest is the affordability of property acquisition. With a median home value of $189,428, the cost of acquiring properties in this ZIP code is relatively modest. Unfortunately, the data on days on market (DOM) and the percentage of homes requiring a price cut to sell is not available, making it difficult to assess the ease of selling properties should the need arise. Nonetheless, the low median home value provides an entry point for investors looking to purchase properties without significant capital outlay.
The third consideration is tenant demand. The population of ZIP 16145 stands at 2,660, with 18.7% of residents being renters. This translates to roughly 499 rental units in the area, indicating a stable but limited pool of potential tenants. Landlords should be prepared to compete for these renters and ensure that their properties offer competitive amenities and conditions.
Verdict: While the rent math leans towards higher-than-market rents with the FMR at $850, landlords must be cautious to avoid pricing themselves out of the market. The median home value of $189,428 makes property acquisition affordable, though the lack of data on DOM and price-cut shares introduces uncertainty regarding resale conditions. Tenant demand is present but constrained by the small population size and lower renter share. For investors, the primary focus should be on maintaining competitive rental rates and ensuring properties are well-maintained to attract and retain tenants in a tight market.
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.