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 Section 8 cap-rate analysis for ZIP code 16150 reveals a mixed picture when comparing federal market rent (FMR) to market rent. For a two-bedroom unit, the annualized FMR is $890 multiplied by 12, equating to $10,680 per year. The median home value in the area is $163,487. This yields an implied gross yield of approximately 6.54% ($10,680 / $163,487).
On the other hand, the market rent for a two-bedroom unit is $842 per month, which annualizes to $10,104. Using the same median home value, this results in an implied gross yield of about 6.19% ($10,104 / $163,487).
Given the 29.6% renter density, it's important to consider how many units are likely to be rented out at any given time. A lower renter density suggests that landlords might face challenges in maintaining full occupancy, which would impact the actual income generated from rental properties.
The N/A-day DOM (days on market) indicates that there isn't sufficient data to determine the average number of days a property remains on the market before being rented. However, assuming a stable housing market, the FMR scenario provides a slightly higher gross yield compared to the market rent scenario. The difference between the two yields is minimal, but the FMR scenario offers a more conservative estimate for potential rental income.
In conclusion, while the FMR-based gross yield of 6.54% is marginally better than the market rent-based gross yield of 6.19%, the actual performance will depend on factors such as occupancy rates and the stability of the housing market in ZIP 16150. Landlords and investors should use these figures as a starting point for their own detailed analysis.
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.