Location: Clarion County, PA | Metro: Armstrong 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 | $750 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 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 | $109,529 | 0.92% | C |
| 3BR | $1,260 | $149,495 | 0.84% | C |
| 4BR | $1,580 | $183,152 | 0.86% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 16242, located in New Bethlehem, PA, within the Armstrong County and Clarion County metro area, reveals several key insights. The HUD Fair Market Rent (FMR) for FY 2024 is set at $890. This amount is significantly higher than the average market rent reported by the Census ACS, which stands at $693. This difference suggests that voucher tenants can cashflow at the FMR level, providing a solid financial buffer for landlords.
To further understand the investment potential, consider the median home value in the area, which is $131,753. Using this figure, we can calculate a rent-to-price ratio. With an average market rent of $693, the annual rent would be approximately $8,316. Dividing this by the median home value yields a rent-to-price ratio of about 6.3%. This ratio indicates that rental income represents a decent portion of the property's value, making it a viable option for investors looking to generate steady passive income.
In terms of the rental versus buying dynamics, the median days on market (DOM) and the percentage of price cuts are not available for this specific ZIP code. However, given the relatively low median home value and the fact that voucher tenants can cashflow at the FMR, the stability of rental income is likely to be strong. This stability reduces the risk of vacancy and ensures a consistent cash flow, which is particularly important for small-portfolio investors.
The strongest investor angle in ZIP 16242 is cashflow. Given the disparity between the HUD FMR and the actual market rents, landlords can expect a positive cash flow when renting to voucher tenants, which is crucial for maintaining profitability and covering operational costs.
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.