Location: Armstrong 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 | $910 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $137,298 | 0.95% | C |
| 3BR | $1,720 | $177,030 | 0.97% | C |
| 4BR | $1,800 | $185,155 | 0.97% | C |
U.S. Census Bureau data (2024)
In Rural Valley, PA (ZIP 16249), the gap between the Fair Market Rent (FMR) and the actual market rent highlights a significant opportunity for landlords and small-portfolio investors. According to the HUD Small Area Fair Market Rent (SAFMR) data for FY 2024, the FMR for a two-bedroom unit is $1,040, while the Census ACS indicates that the average market rent is $677. This results in a gap of $363 per month, which translates to a 53.6% premium over the market rate.
The FMR being higher than the market rent means that voucher tenants can offer a more consistent and higher yield compared to open-market tenants. This is particularly relevant given that only 19.8% of residents in Rural Valley are renters, indicating a smaller pool of potential open-market tenants. Additionally, the median home value of $158,728 and median income of $68,214 suggest that many residents might prefer homeownership, further limiting the number of available renters.
Landlords accepting Section 8 vouchers can expect steady rental income that exceeds the local market rate. This makes it an attractive investment strategy, especially in an area where finding willing renters might be challenging due to the low rental population percentage and relatively high median income levels.
It's important to note that while the FMR provides a benchmark, local housing authorities have the discretion to set payment standards above or below this figure. Therefore, it is advisable to confirm the specific program rules in Rural Valley, PA, before making investment decisions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.